Q:

What are the interest rates on a typical spot loan?

A:

Quick Answer

As of 2015, the interest rates on a typical spot loan range from about 15 percent on the first $100 to an annual rate of 390 percent, depending on the loan amount and the state law that applies. For example, in Connecticut, the interest cannot exceed 30.3 percent.

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Full Answer

In states such as Florida, the spot loan lender cannot charge more than 10 percent over the loan amount, but it can charge a 15-percent fee for the loan operation in addition to charging a verification fee. The fees can result in a total charge of 390 percent. In Kansas, spot loan interest rates are about 15 percent on the cash loan, and an additional 15 percent for the finance fee. However, once the loan has matured, the lender cannot charge more than 3 percent.

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