Payday Loans New Hampshire

Learn about payday loan regulations in New Hampshire with zaving.

Last updated by Zaving Editorial Team, on April 23rd, 2024

Are you in need of financial assistance in New Hampshire? Whether it's covering unexpected expenses or managing bills, having access to reliable resources is important. Explore the payday lending laws in New Hampshire and discover alternative options with zaving to navigate your financial situation effectively.

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

A payday loan is a short-term, high-interest loan typically utilized by individuals to cover immediate expenses until their next paycheck. These loans are often sought during emergencies or when facing unexpected financial obligations. Borrowers usually repay the loan, along with interest and fees, upon receiving their next paycheck.

In New Hampshire, payday loans are technically legal but subject to strict regulations. The state imposes a $500 limit on payday loans and mandates specific loan terms. The minimum loan term is 7 days, while the maximum loan term is 30 days. More notably, since 2009, New Hampshire law caps the APR at 36%, ensuring that lenders cannot charge higher rates for their loans.

This APR cap makes it unprofitable and financially unviable for lenders to offer payday loans in New Hampshire, essentially prohibiting their operation in practice.

What are the alternatives to payday loans in New Hampshire?

In New Hampshire, individuals facing short-term financial challenges have several alternatives to payday loans that they can explore:

  • Personal installment loans: Consider applying for a personal installment loan from banks, credit unions, or online lenders operating in New Hampshire. These loans typically offer more favorable terms than payday loans, including lower interest rates and longer repayment periods, making them a more viable option for managing financial needs.
  • Credit union loans: Joining a credit union in New Hampshire may provide access to small-dollar loans with more favorable terms compared to traditional payday loans. Credit unions often offer loans with competitive interest rates and flexible repayment options for their members.
  • Emergency assistance programs: Explore local community resources and government programs that offer emergency financial assistance to individuals in need. These programs may provide grants, vouchers, or low-interest loans to help cover essential expenses during times of financial hardship.
  • Financial counseling services: Seek guidance from nonprofit credit counseling agencies or financial counseling services available in New Hampshire. These organizations can provide valuable assistance with budgeting, debt management, and finding alternative financial solutions to address immediate needs without resorting to payday loans.
  • Negotiate payment plans: Reach out to creditors or service providers to discuss setting up payment arrangements or requesting extensions on existing bills. Many creditors are willing to work with individuals to establish manageable repayment plans based on their financial circumstances.
  • Local charitable organizations: Consider contacting local charities, churches, or nonprofit organizations in New Hampshire that offer assistance with basic needs such as food, housing, and utilities. These organizations may provide financial aid programs or referrals to other resources available to residents in need.
  • Support from friends and family: Seek assistance from trusted friends or family members who may be willing to provide financial support during times of financial difficulty. Be sure to discuss repayment terms and expectations openly to maintain healthy relationships while seeking financial help.

Can I take out a payday loan in another state?

To secure a payday loan, you must be a resident of the state where you're applying for the loan. Lenders verify your residency during the application process to ensure compliance with state laws. Attempting to obtain a loan from an out-of-state lender may result in denial or penalties for providing false information. Thus, your residency status is a critical factor in determining your eligibility for borrowing.

Moreover, payday lenders are typically licensed to operate only within the state or states where they are registered. This ensures that payday lending practices adhere to the laws of the state where the lender is established.

State laws govern various aspects of payday lending, including interest rates, fees, loan amounts, repayment terms, and borrowing limits. Each state has its own specific rules, making it essential for borrowers to understand and follow the regulations 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

Borrowers should familiarize themselves with these regulations and limitations when considering a payday loan.