Everything You Need to Know about Consumer Loans in Utah
Consumers in Utah who are facing a financial crisis have various lending options at their disposal. The first option is to obtain a Utah payday loan. These types of loans often have minimal requirements and are meant to be short-term.
Another type of Utah personal loans available in the state is installment loans. These are paid back over a longer period of time in equal monthly installments. The Utah Department of Financial Institution regulates the financial institutions found within this state including banks, credit unions, and payday lenders. Learn more about the lending situation in Utah below.
Online Payday Loans in Utah
Utah’s cash advances are limited for a period of 10 weeks. There aren’t any restrictions on the sum of a loan a borrower may take and the loan may be rolled over several times as long as the loan term does not exceed 10 weeks.
There are certain regulations a lending company in Utah must follow so that they can keep doing business in the state:
- Pay the registration fee
- Supply the facts required, such as the full rundown of all fees
- Supply a written agreement to the client
- The client should be well informed of the payment dates, terms, and all fees
Lending Interest Rates in Utah
The state of Utah is pretty much an open season to the borrower since there is no limit on how much interest can be charged. Critics have said that this practice leads to huge APRS’s and forces a borrower to take out multiple loans to cover defaults.
Utah interest rates are determined by various factors, among them a borrower’s rating. If an applicant’s credit rating is poor, there will be a higher interest rate charged. However, other types of loans in Utah such as installment loans or title loans will still attract a high APR regardless of whether the rating is good or bad.
Although cash advances in Utah have no limit on APRS, the state has capped the interest rate on bank loans at 10% per annum in the absence of a contract specifying a different rate.