Payday Loans Maine

Learn about payday loan regulations and explore your options in Maine with zaving.

Last updated by Zaving Editorial Team, on April 22nd, 2024

Are you in need of financial assistance in Maine? Whether it's unexpected bills or emergencies, finding the right solution is crucial. Explore the payday lending laws in Maine and discover alternative options with zaving to address your financial needs effectively.

What is a payday loan and can I get one in Maine?

A payday loan is a short-term, high-interest loan typically taken out by individuals who need quick access to cash before their next paycheck. These loans are usually for small amounts, ranging from a few hundred to a couple of thousand dollars, and are intended to be repaid with interest and fees on the borrower's next payday.
In Maine, payday lending is legal, but with significant restrictions in place to protect consumers.

Lenders can charge finance charges based on the actuarial method, capped at:

  • 30% per year on unpaid balances up to $2,000
  • 24% per year on unpaid balances between $2,000 and $4,000
  • 18% per year on unpaid balances exceeding $4,000


Furthermore, lenders may impose minimum charges of:

  • $5 for loans up to $75
  • $15 for loans between $75 and $250
  • $25 for loans of $250 or more

What are the alternatives to payday loans in Maine?

In Maine, when individuals face short-term financial difficulties, there are several alternatives to payday loans that they can consider:

  • Personal installment loans: Explore the option of obtaining a personal installment loan from a reputable bank, credit union, or online lender. These loans typically come with lower interest rates and more extended repayment periods compared to payday loans, making them a more viable choice for managing financial emergencies.
  • Credit union loans: Consider joining a credit union in Maine and exploring the small-dollar loan options they offer to their members. Credit unions often provide loans with favorable terms, including lower interest rates and flexible repayment plans, which can be beneficial for individuals in need of quick cash.
  • Emergency assistance programs: Investigate local community resources and government assistance programs that provide emergency financial aid to residents facing financial hardship. These programs may offer grants, vouchers, or low-interest loans to help cover essential expenses during challenging times.
  • Financial counseling services: Seek guidance from nonprofit credit counseling agencies or financial counseling services available in Maine. These organizations can provide valuable advice on budgeting, debt management, and alternative financial solutions to address immediate financial needs without resorting to payday loans.
  • Negotiate payment plans: Reach out to creditors or service providers to discuss the possibility of setting up payment arrangements or requesting extensions on existing bills. Many creditors are willing to work with individuals to develop manageable repayment plans that suit their financial circumstances.
  • Local charitable organizations: Reach out to local charities, religious organizations, or nonprofit groups that offer assistance with basic needs such as food, shelter, and utilities. These organizations may provide financial aid programs or referrals to other resources available to residents in need.
  • Support from friends and family: Consider seeking support from trusted friends or family members who may be willing to offer financial assistance or help during times of financial difficulty. Open communication about repayment terms and expectations is essential to maintain healthy relationships while seeking financial help.

Can I take out a payday loan in another state?

In order to obtain a payday loan, you must be a resident of the state where you're applying for the loan. Lenders typically verify your residency during the application process to ensure compliance with state laws and regulations. Attempting to obtain a loan from an out-of-state lender can result in denial of the loan or potential penalties for providing false information. Therefore, your residency status plays a significant role in determining your eligibility for borrowing.

Moreover, payday lenders are usually licensed to operate only within the state or states where they are registered. This ensures that payday lending activities are conducted in accordance with the laws of the state where the lending institution is located.

State laws govern various aspects of payday lending, including interest rates, fees, loan amounts, repayment terms, rollovers, and borrowing limits. It's essential for borrowers to understand the specific regulations governing payday loans in their state of residence.

As of February 2024, payday loans are legal in 29 U.S. states: Alabama, Alaska, California, Delaware, Florida, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Missouri, Nevada, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, and Wyoming.

However, payday loans are prohibited or severely restricted in the District of Columbia and the following states:

  • Arizona
  • Arkansas
  • Colorado
  • Connecticut
  • Georgia
  • Hawaii
  • Illinois
  • Maryland
  • Massachusetts
  • Minnesota
  • Montana
  • Nebraska
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • Pennsylvania
  • South Dakota
  • Vermont
  • West Virginia

Being aware of these state-specific regulations is essential for individuals considering payday loans.