The 30% APR Cap
Maine law prohibits charging more than 30% APR on loans under $2,000. Finance charges are further broken into tiers — $5 on loans up to $75, $15 on loans between $75 and $250, and $25 on loans above $250 — layered inside that overall 30% ceiling.
Licensing Applies Regardless of Lender Location
Any lender making loans to Maine residents has to hold a Maine Supervised Lender license and follow the state's rate and fee rules, no matter where the lender itself is based. Unlicensed payday lending is explicitly prohibited under state law.
Why Traditional Payday Loans Don't Operate Here
Because triple-digit APR payday loans can't fit inside a 30% cap, the classic two-week payday storefront model isn't viable in Maine. Borrowers instead find installment and small-dollar loan products priced within the legal ceiling.
| Factor | Maine Rule |
|---|---|
| Rate cap (loans under $2,000) | 30% APR |
| Finance charge tiers | $5 (≤$75), $15 ($75–$250), $25 (>$250) |
| Licensing | Maine Supervised Lender license required |
| Traditional payday loans | Not viable under this cap |
Because Maine's cap rules out the triple-digit APR payday model, comparing licensed installment loan offers within the 30% ceiling is the realistic path here.
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