Illinois Payday and Installment Loans: The 36% APR Cap Explained

Yes, but with a hard ceiling. Illinois licenses payday and installment lenders, and since March 23, 2021 a 36% APR cap applies to most consumer loans, payday and installment loans included. APR (annual percentage rate) is the yearly cost of a loan, with fees counted in. The cap comes from the Predatory Loan Prevention Act, and the Illinois Department of Financial and Professional Regulation (IDFPR) licenses the lenders.

Our directory lists 86 installment loan stores and 20 pawn shops in Illinois. It does not list payday or title stores yet. That is a gap in our data. It is not a statement about what exists in the state.

The 36% APR cap

The IDFPR's consumer credit page says the Act "caps the interest rate on all subject consumer loans in the state, including" Consumer Installment Loan Act (CILA) and Payday Loan Reform Act (PLRA) loans, at 36% APR. The cap applies since March 23, 2021, under Public Act 101-0658 (815 ILCS 123). It also reaches retail installment loans on autos, according to the same page.

A worked example, our arithmetic: if you borrowed $1,000 at the 36% APR ceiling for a full year, interest would be about $360 on a plain interest-only basis. A lender can charge less than the cap, never more under this Act. Because APR includes fees, a flat "fee" on a two-week loan counts toward the 36% too. Our guide to how APR works in payday and cash advance loans shows how to turn a fee into an APR.

Payday loans in Illinois

Payday lenders in Illinois are licensed and regulated by the IDFPR under the Payday Loan Reform Act (815 ILCS 122) and are subject to the 36% APR cap. The IDFPR describes a payday loan as "a short duration loan intended to allow consumers to meet short term financial needs." We did not find loan-size or term limits on that page, so we do not give any here. Read the loan agreement and the Act itself for those.

We do not list Illinois payday stores yet. The Illinois page shows what we do hold.

Installment loans in Illinois

Consumer installment lenders make loans of up to $40,000 that are repaid in installments. They are licensed by the IDFPR under the Consumer Installment Loan Act (205 ILCS 670). The 36% APR cap applies to those loans too.

We list 86 installment loan stores in Illinois: 59 from World Finance and 27 from OneMain Financial. The difference between this loan and a payday loan is in our guide installment loans vs. payday loans.

Title loans in Illinois

The IDFPR page warns about one thing in particular: if a title loan agreement gives the lender a "security interest" in your vehicle, the lender may be able to repossess it when you default. We hold no verified title loan limits for Illinois and list no title stores yet. Before you sign, ask whether the car is collateral and what happens after one missed payment. See title loans explained for the general mechanics.

Pawn loans in Illinois

We list 20 pawn shops in Illinois, all EZPAWN. Our rules data holds no verified Illinois pawn rule, so ask the shop for its written terms: the amount, the charge, the due date and what happens to the item if you do not redeem it.

How to check a lender's license

The IDFPR Division of Financial Institutions keeps a license lookup. Search the lender's exact name, or the name on the loan paperwork. The agency's main page is idfpr.illinois.gov/dfi. If a lender is not on the list, that is a reason to ask questions before you hand over any bank details. Our online lenders page for Illinois shows what we have on online lenders.

State rules that can matter

State	What the rule says	Law
Illinois	Most consumer loans, including payday and installment loans, are capped at 36% APR.	Predatory Loan Prevention Act (815 ILCS 123); P.A. 101-0658
Illinois	Since March 23, 2021 the cap applies to Consumer Installment Loan Act and Payday Loan Reform Act loans; auto retail installment loans are also covered.	P.A. 101-0658 (815 ILCS 123)
Illinois	Payday lenders are licensed by the IDFPR under the Payday Loan Reform Act.	815 ILCS 122
Illinois	Consumer installment lenders make loans of up to $40,000 and are licensed by the IDFPR.	Consumer Installment Loan Act (205 ILCS 670)
Illinois	If a title loan gives the lender a security interest in the vehicle, it may repossess on default.	IDFPR DFI consumer credit FAQ

From our state rules data, last checked October 9, 2026, each confirmed on the regulator's own page. Rules change. Check the Illinois page and the lender directory.

Where the stores we list are

We list stores in 81 Illinois cities. Chicago has the most in our data (7), followed by Freeport and Springfield (3 each), then Aurora, Rockford, Elgin and Waukegan (2 each). Of the 106 stores whose hours we hold, 20 are open Saturday, 14 Sunday and 16 late. Call before you go, since hours change. Another route is lenders near me.

Options to consider first

These are general options, not recommendations of a particular provider:

• A federal credit union payday alternative loan (PAL). PALs I are $200 to $1,000 over 1 to 6 months, and PALs II go up to $2,000 over 1 to 12 months, with an application fee of at most $20 (12 CFR 701.21(c)(7)). The NCUA lets the rate reach 28% while the 18% ceiling it set stands, which is below Illinois's 36% for other lenders.
• Talk to who you owe. A utility, landlord or clinic will often agree to a plan if you ask before the due date.
• 211. Call 211 or visit 211.org for local help with rent, utilities and food.
• The regulator. If you think a lender broke the law, the IDFPR is the agency that licenses it.

Frequently asked questions

Are payday loans legal in Illinois?

Yes, from licensed lenders. They are regulated under the Payday Loan Reform Act (815 ILCS 122) and capped at 36% APR.

What is the maximum interest rate in Illinois?

Most consumer loans, including payday and installment loans, are capped at 36% APR under the Predatory Loan Prevention Act, effective March 23, 2021.

How much can an installment lender lend in Illinois?

Consumer installment lenders licensed under the Consumer Installment Loan Act make loans of up to $40,000, repaid in installments.

Can a title lender take my car in Illinois?

If the agreement gives the lender a security interest in the vehicle, the IDFPR says the lender may be able to repossess it when you default. Read that part of the contract first.

Why does your site list no Illinois payday stores?

Our directory is still growing and does not cover Illinois payday stores yet. Illinois law licenses payday lenders, so their absence in our list is not a sign they are not allowed.

Sources

• Consumer credit (brochure and FAQ), Illinois Department of Financial and Professional Regulation, checked October 11, 2026 (also in our state rules data, last checked October 9, 2026).
• License lookup, IDFPR Division of Financial Institutions, from our regulator data, checked October 9, 2026.
• 12 CFR 701.21, Loans to members (payday alternative loans), eCFR, checked October 11, 2026.
• Permissible Loan Interest Rate Ceiling Extended, National Credit Union Administration, February 2026.
• 211.org, United Way Worldwide, checked October 11, 2026.

We are not a lender. This is general information, not legal advice. Rules change; check Illinois's current rules and the lender's own disclosures before you borrow.