Payday loan is a type of loan that is easy to obtain because of the simple requirements and hassle free process. These days, payday loan is very popular because it provides people in need of money with instant cash. Additionally, the easy process allows individual better option when it comes to loans.
In New Hampshire’s, the payday loan laws prohibits exorbitant interest rates on cash advances to protect consumers. The state does not allow criminal actions against borrowers, so lenders cannot harass anyone in case they default. The only time criminal action is allowed when the loan taken is done to defraud lender.
New Hampshire Loan Amount and Interest Rates
The state laws put the maximum loan amount to $500 and borrowers can only apply for a loan one period at a time. The interest rates under the New Hampshire payday loan laws is 36% per annum, which is very low compare to the other states. Even the additional financial charges limit is also very low, as a loan of $100 issued for 14 days usually has a finance charge of $1.38, which includes the approval fees, processing and other similar items.
New Hampshire Repayment Period and Rollovers
The state laws also imposed repayment limit for payday loans. An unsecured, short term payday loan must be issued for 7 days and up to 30 days. There is no rollover or renewals, as the New Hampshire laws prohibit it. So, when borrowers default they are not force to refinance, renew, or consolidate the short-term loan just to pay off the debt on the due date of the loan.
But of course, the state of New Hampshire allow borrowers to take up a loan immediately, from the same lender provided the first loan is fully paid with the borrowed money. The laws strictly imposed the one loan at a time per name to protect borrowers. In other words, if you have a loan in your name already and another lender issued a new loan on your name again, the process considered illegal. Nevertheless, even if the lender can be held legally for violating the payday loan laws of the state, borrowers are still obligated to settle the loan but without the interest just the principal loan.Share