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What protections does Illinois offer personal loan borrowers?

Short answer

Illinois passed the Predatory Loan Prevention Act in 2021, capping all consumer loans at 36% APR including fees. The law applies to all installment loans, payday loans, and title loans, making Illinois one of the more borrower-protective states.

Context

The Illinois Predatory Loan Prevention Act (PLPA) set a uniform 36% Military-APR-equivalent ceiling across all consumer loan types, eliminating most subprime lending in the state. The law took effect immediately on signing in March 2021.

For Illinois residents, the practical effect is materially better pricing on small-dollar loans (where APRs previously ran 200%+ for payday and similar products), at the cost of fewer lender options for deeply subprime borrowers. Federal credit-union PALs and CDFIs remain available.

Editorial
Reviewed by
Compliance Review
Last reviewed
May 22, 2026
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