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Personal loans in Illinois

Personal loans for bad credit in Illinois

Personal loans are allowed in Illinois from state-licensed lenders (Consumer Installment Loan Act License). Here are the limits Illinois law sets, what a typical loan can cost, and where to get free help if you need it.

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Last updated .

Part of the Illinois guide

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What people use personal loans for

A personal loan is a lump sum repaid in fixed monthly payments, often for a larger cost such as a car repair, a move or medical bills; the examples below stay within Illinois limits.

What personal loans can cost

These examples show how cost adds up. They are illustrative, not a quote. Your lender sets the actual rate and terms.

Representative example

Amount borrowed
$3,000
Annual percentage rate (APR)
29.99%
Repayment
12 monthly payments
Payment
$292.45
Finance charge
$509.40
Total of payments
$3,509.40

Example: a $3,000 installment loan at 29.99% APR repaid in 12 monthly payments of $292.45 costs $3,509.40 in total, including a finance charge of $509.40. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

Representative example

Amount borrowed
$1,000
Annual percentage rate (APR)
29.99%
Repayment
12 monthly payments
Payment
$97.48
Finance charge
$169.76
Total of payments
$1,169.76

Example: a $1,000 installment loan at 29.99% APR repaid in 12 monthly payments of $97.48 costs $1,169.76 in total, including a finance charge of $169.76. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

Representative example

Amount borrowed
$500
Annual percentage rate (APR)
29.99%
Repayment
12 monthly payments
Payment
$48.74
Finance charge
$84.88
Total of payments
$584.88

Example: a $500 installment loan at 29.99% APR repaid in 12 monthly payments of $48.74 costs $584.88 in total, including a finance charge of $84.88. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

What Illinois law allows

Personal loans in Illinois
ProductStatusAPR capAmountTermLicenseLaw
Installment and personal loans[1][2][3] Allowed 36% APR Not set by statute Not set by statute Consumer Installment Loan Act License 815 ILCS 123; 205 ILCS 670; 38 Ill. Admin. Code pt. 110
Verified against the statute and regulator on September 23, 2026. Laws change; confirm with the regulator before you borrow.

Bars place each APR cap on a 0 to 400% scale; the pin marks the cap. A striped bar means the statute sets no numeric cap.

The rules in full

Installment and personal loans

Rate cap
The Predatory Loan Prevention Act (PLPA), 815 ILCS 123, imposes an all-in 36% Military APR (MAPR) cap on consumer loans of $40,000 or less, covering closed-end and open-end credit and in addition to the Consumer Installment Loan Act (205 ILCS 670, CILA). The PLPA repealed CILA's prior 'Small Loan Exemption' that had allowed APRs above 36% on loans of $4,000 or less, and eliminated the $25 CILA document-preparation fee.
Fees
All-in MAPR calculation includes interest, fees, and charges; a loan structured to exceed 36% APR is null and void with no right to collect any principal, interest, fees, or charges. Banks and credit unions are exempt from the PLPA cap.
License
Consumer Installment Loan Act (CILA) License under 205 ILCS 670, issued by the Illinois Department of Financial and Professional Regulation (IDFPR), Division of Financial Institutions.

Full detail for every loan type: Illinois lending laws.

Rent and jobs in Illinois

Typical rent and the jobless rate, to weigh before a loan payment.

Rent and unemployment in Illinois
MeasureValueYear
Fair market rent, 2 bedroom (monthly)[4]$1,579FY2026
Unemployment rate[5]4.7%2026-08

Other options in Illinois

Cheaper options to try first

Worth checking whatever your credit: these can cost less than a high-rate loan.

  • Credit union payday alternative loans (PALs), capped at 28% APR under NCUA rules (12 CFR 701.21).
  • Nonprofit credit counseling through the National Foundation for Credit Counseling.
  • A payment plan from the company you owe, if you ask before you miss a payment.
  • 211 for help with rent, utilities and food: call 211 or visit 211.org.

More cheaper options in Illinois.

Other loan types allowed in Illinois

See every loan type Illinois law allows.

Personal loans in nearby states

  • IndianaAllowed 36% APR (top tier)
  • MissouriAllowedNo rate limit in state law No rate limit
  • IowaAllowed 36% APR (top tier)
  • KentuckyAllowed 36% APR (top tier)
  • WisconsinAllowedNo rate limit in state law No rate limit

Sources

  1. mayerbrown.com/en/insights/publications/2021/04/illinois-imposes-strict-36-usury-cap-for-a-range-of-consumer-finance-products-and-providers. Retrieved September 23, 2026.
  2. idfpr.illinois.gov. Illinois Department of Financial and Professional Regulation (IDFPR), Division of Financial Institutions. Retrieved September 23, 2026.
  3. ilga.gov. 815 ILCS 123. Retrieved September 23, 2026.
  4. National Low Income Housing Coalition. Out of Reach 2026: Illinois. Retrieved September 23, 2026.
  5. U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.

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Important disclosures

APRs vary by lender and state in Illinois. Each lender sets its own rates and terms and must show you the APR before you sign.

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  • Questions about a lender licensed in Illinois? Contact the Illinois Department of Financial and Professional Regulation (IDFPR), Division of Financial Institutions or file a state complaint.
  • You can submit a complaint about any lender to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.