Missouri Payday Loans

Missouri is one of the states that allows payday loans, which are short-term loans that are usually due on the borrower's next payday. Payday loans are regulated by the Missouri Division of Finance, which sets the maximum loan amount, interest rate, fees and repayment terms for these loans.

According to the Missouri Division of Finance, the maximum loan amount for a payday loan is $500, and the maximum interest rate is 75% per annum. The maximum fee that a lender can charge is $75 for a $100 loan, or 75% of the loan amount, whichever is less. The minimum loan term is 14 days, and the maximum loan term is 31 days. The borrower can renew or roll over the loan up to six times, but each time they must reduce the principal amount by at least 5%.

The average cost of a payday loan in Missouri is very high compared to other states. According to a report by the Pew Charitable Trusts, the average annual percentage rate (APR) for a payday loan in Missouri is 455%, which is more than double the national average of 391%. The average loan amount in Missouri is $309, and the average fee is $53 per $100 borrowed. This means that a borrower who takes out a $309 loan for 14 days will pay back $462, which is $153 more than the original loan amount.