State reference · IL
Illinois lending rules
Illinois has 1,294 Census places covered on Paydayloaning, with a combined estimated population of 10,940,788. Payday and small-loan terms in Illinois are set by licensed lenders under state law; the sourced rules below apply to every borrower in the state.
Advertising disclosure: Paydayloaning may receive a referral fee if you apply through the link above. That fee does not change the rate you are offered, and it does not change our content. We are not a lender. The lowest rates are only available to the most qualified applicants. Read the full disclosure.
The verdict
Permitted under license
Source: Illinois General Assembly (Illinois Compiled Statutes) · as of 2026-09-16
- Maximum rate
- 9% annual percentage rate (general written-contract interest cap)
- Illinois General Assembly (Illinois Compiled Statutes)
- Licensing
- Consumer Installment Loan Act license required from the Director of Financial Institutions…
- Illinois General Assembly (Illinois Compiled Statutes)
- Regulator
- Illinois Department of Financial and Professional Regulation (IDFPR), Division of Financial Institutions
- Illinois Department of Financial and Professional Regulation
Rules are quoted from the cited sources. How payday lending is regulated.
Key rules for borrowers in Illinois
Quoted from the statute, regulator or agency named in each row.
| Rule | Detail | Source |
|---|---|---|
| Maximum legal interest rate (usury cap) | 9% annual percentage rate (general written-contract interest cap) Source says: "it shall be lawful for the parties to stipulate or agree that an annual percentage rate of 9%, or any less sum". |
Illinois General Assembly (Illinois Compiled Statutes) as of 2026-09-16 |
| Payday lending status | Permitted under license; capped at 36% annual percentage rate (payday loans) Source says: "shall not contract for or receive a charge exceeding a 36% annual percentage rate ... for a payday loan". |
Illinois General Assembly (Illinois Compiled Statutes) as of 2026-09-16 |
| Small-loan / installment lender licensing | Consumer Installment Loan Act license required from the Director of Financial Institutions (loans above 9% APR) Source says: "No person ... shall engage in the business of making loans of money ... except ... after first obtaining a license from the Director of Financial Institutions". |
Illinois General Assembly (Illinois Compiled Statutes) as of 2026-09-16 |
| State lending regulator | Illinois Department of Financial and Professional Regulation (IDFPR), Division of Financial Institutions Source says: "DFI licenses, charters, and examines a wide variety of financial products and services including: Consumer and Sales Finance and Collection Agencies". |
Illinois Department of Financial and Professional Regulation as of 2026-09-16 |
| Installment lender net-worth requirement | $30,000 minimum positive net worth (plus $25,000 surety bond) Source says: "every applicant shall prove ... that the applicant has and will maintain a positive net worth of a minimum of $30,000". |
Illinois General Assembly (Illinois Compiled Statutes) as of 2026-09-16 |
Cities in Illinois
All Illinois citiesWe cover 1,294 Census places in Illinois.
Advertising disclosure: Paydayloaning may receive a referral fee if you apply through the link above. That fee does not change the rate you are offered, and it does not change our content. We are not a lender. The lowest rates are only available to the most qualified applicants. Read the full disclosure.