Maine payday loans: apply online for a payday advance

Maine takes a different route from most states. Short-term loans are allowed, but only from licensed supervised lenders, and they fall under the same rate caps as other consumer loans. For borrowers, that means low annual rates with a small minimum charge on short loans.

How payday loans work in Maine

Maine's Consumer Credit Code defines a payday loan as a supervised loan in which cash is advanced against your personal check or a debit authorization, with payment deferred to a later date. Any lender charging more than 12.25% a year needs a supervised lender license from the Bureau of Consumer Credit Protection. In practice, few lenders offer classic payday products in Maine; years ago the Bureau reported licensing only a handful, and most problems came from unlicensed internet lenders that ignored Maine's limits.

What you can get is a short-term or installment loan from a licensed lender, priced under Maine's finance charge rules: up to 30% a year on balances up to $2,000, 24% on the portion from $2,000 to $4,000 and 18% above $4,000. On short loans, a minimum charge can apply: up to $5 on $75 or less, $15 on amounts above $75 and under $250, and $25 on $250 or more.

How to get a payday advance in Maine online

1. Decide between a short advance and an installment loan. For a few weeks, the minimum charge usually applies; for a few months, the 30% annual rate does.
2. Apply with your Maine address and income. The lender must be licensed in Maine to lend to you.
3. Check the finance charge in dollars. It cannot exceed Maine's caps.
4. Sign and receive the deposit. Most loans fund the next business day.

Maine finance charge limits

Example

A $250 payday advance for 14 days in Maine

$250Borrowed+$25Minimum charge=$275Due

At 30% a year, 14 days of interest on $250 is under $3, so the $25 minimum charge can apply instead, about 261% APR. On $180, the most is $15.

Why a slightly longer loan can cost less in Maine

Because of the minimum charge, very short loans have a high APR in Maine, even though the dollar cost is modest. Stretch the same amount over a few months and the 30% annual rate takes over. For example, $500 for 30 days at 30% would be about $12.33 in interest, so the $25 minimum applies; $1,500 for 60 days at 30% is about $73.97. If you need more than a few hundred dollars, an installment loan of a few months is often the better value in Maine.

Maine installment loan examples

Equal monthly payments at Maine's 30% maximum on balances up to $2,000. Offers may be lower.

Maine payday lenders: licensed only

Maine payday lenders must hold a supervised lender license, and you can check a lender through NMLS Consumer Access, where Maine supervised lenders are licensed, or the Bureau's licensing pages. If an online lender is not licensed in Maine, or quotes a rate above the caps, it is not following Maine law. That is the single most useful check before you sign.

Watch for unlicensed online lenders

Maine's main payday problem has long been online lenders that are not licensed in the state and charge far more than Maine allows. If a lender will not say whether it is licensed in Maine, wants an upfront fee, quotes a two-week fee like $15 or $20 per $100 on a large amount or asks for payment by gift card, walk away. A licensed lender's offer will show a finance charge within Maine's caps and the lender's name, and you can confirm the license before you sign.

What Maine lenders check

A licensed lender verifies your identity and Maine address, confirms that your income is deposited regularly and looks at your existing debts to make sure the payment fits. For small loans, many do not run a hard pull with the big three bureaus; for larger installment loans, a credit check is more likely and the lender should tell you first.

Payday advance loan Maine borrowers can get online

A payday advance loan in Maine, sometimes called a payday advance Maine residents can get against their next check, is priced under the same rules as any supervised loan. Online, you apply from home, a licensed lender verifies your income and bank account electronically and the money is deposited directly. You see the finance charge and APR before you agree.

Across Maine, online

Portland, Lewiston, Bangor, South Portland, Auburn, Biddeford, Augusta, Waterville or a coastal town in the off-season: applying online works the same everywhere in Maine and saves a long drive to a storefront that may not exist nearby.

Common reasons Mainers borrow

Heating oil and propane deliveries in winter, snow-tire and vehicle repairs, seasonal gaps for tourism and fishing workers, and medical or dental bills are the usual reasons. With Maine's caps, an installment loan spread over a few months can cover these at a predictable cost. A heating oil delivery of several hundred dollars, for example, can be repaid over three to six months instead of coming out of one paycheck in the coldest part of the year.

Maine compared with New Hampshire

Next door, New Hampshire allows payday loans up to $500 at 36% APR with no other fees and a 7-to-30-day term. Maine instead caps rates at 30% a year on the first $2,000 but allows a minimum charge on small, short loans. Maine's caps protect you if you live in Maine, wherever the lender is based.

Seasonal, fishing and tourism workers

Much of Maine's economy runs on seasons. If your income is high in summer and thin in winter, lenders look at your recent deposits, so apply while income is flowing and choose a repayment schedule that finishes before your slow months. A short installment loan with payments you can make in the busy season is easier than a single payment due in January.

Benefits as income in Maine

Social Security, disability, pension and unemployment benefits deposited to your checking account can count as income with many lenders. Ask for a due date one day after the benefit posts so the money is always in place.

Maine credit unions

Maine has a large credit union network. Federal credit unions can offer payday alternative loans of $200 to $2,000 at up to 28% APR to members, and many state credit unions have small-loan programs. If you are a member, ask; if you need money faster, a licensed online lender is the quickest route.

Requirements

• Maine residency and age 18 or over, with a Maine address.
• Dependable income, whether a paycheck or benefit deposits.
• A checking account for the deposit and repayment.
• A photo ID, your Social Security number and a phone number.

Maine loans with bad credit

Licensed lenders look at your income and bank history, and many do not rely on your score alone. Bad credit can apply; a low score may mean a smaller loan. Read more on our bad credit loans page.

Borrowing $2,000 or more in Maine

Larger loans are priced in tiers: 30% a year on the first $2,000, 24% on the part from $2,000 to $4,000 and 18% on anything above $4,000, with 18% applied to the whole loan once it passes $8,000. That blended rate makes bigger installment loans in Maine comparatively affordable. Lenders will look more closely at your income and debts for larger amounts, so have recent pay stubs or bank statements ready.

How fast Maine loans fund

Decisions are often quick, and most loans fund by the next business day after you sign. Weekend requests usually fund Monday, and holiday weekends add a day.

Complaints and help

If you have a problem with a lender, contact the Maine Bureau of Consumer Credit Protection at 1-800-332-8529 (in state) or (207) 624-8527, or file a complaint online. The Bureau can tell you whether a lender is licensed.

Tips for borrowing in Maine

• Confirm the lender is licensed in Maine before you sign.
• For more than a few hundred dollars, compare a short installment loan with a two-week advance.
• Check the finance charge in dollars, not just the APR.
• Choose a payment date right after your paycheck or benefit deposit.
• Keep your agreement and the Bureau's phone number handy.

After you apply

Lenders licensed for Maine in our partners' network review your request and, if they can help, show the amount, finance charge, APR and due date or schedule. Sign if it fits your budget; close it if not, at no cost to you.

Repaying a Maine loan

Your lender collects the payment on the due date or each scheduled date. You can usually pay early to cut interest on an installment loan. If anything changes, call the lender before the due date and ask what options it can offer; licensed lenders would rather agree a new date than send a loan to collections.

More options

See installment loans, a $1,000 loan and emergency loans, or apply for payday loans online.