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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). 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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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. People use one for a larger cost they want to spread out, such as a car repair, a move, medical bills or several higher-rate debts rolled into one payment. The examples below show what larger and smaller amounts can cost 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 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.

Money snapshot for Illinois

Illinois household data
MeasureValueYear
Fair market rent, 2 bedroom (monthly)[4]$1,579FY2026
Population[5]12,710,1582024
Unemployment rate[6]4.7%2026-08

Other options in Illinois

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

  • Emergency loans in Illinois: allowed under Illinois law; see its limits and license rules.
  • Installment loans in Illinois: allowed under Illinois law; see its limits and license rules.
  • Payday loans in Illinois: allowed under Illinois law; see its limits and license rules.
  • Title loans in Illinois: allowed under Illinois law; see its limits and license rules.
  • Credit union payday alternative loans (PALs). Federal credit unions may offer small loans of up to $2,000 with terms of up to 12 months and an APR no higher than 28%, under NCUA rules (12 CFR 701.21). You usually need to be a member.
  • Nonprofit credit counseling. A counselor accredited by the National Foundation for Credit Counseling can help you build a budget or a debt management plan.
  • Ask your creditor for a payment plan. Utilities, hospitals and many lenders offer hardship or extended payment plans if you ask before you miss a payment.
  • Local assistance. Call 211, or visit 211.org, for emergency help with rent, utilities and food in Illinois.

See every loan type Illinois law allows.

Personal loans in nearby states

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. Census Bureau, Population Division. Vintage 2024 National and State Population Estimates. Retrieved September 23, 2026.
  6. U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.

Important disclosures

Illustrative range for installment loans in Illinois: APRs from 5.99% to 35.99%, where the state APR cap is 36%. This range is not a quote; each lender sets its own rates. Your APR depends on your credit, income, state and the lender.

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  • Short-term loans are costly and are not a long-term financial solution. Borrow only what you can repay on time.
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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.