Maine Payday Loan Laws, Explained

Last updated: July 20, 2026

By the US Lending Editorial Team · Reviewed for factual accuracy against the federal and state sources cited on this page.

Key takeaway

Key takeaway: Maine's Consumer Credit Code sets one of the stricter small-loan rate caps in the country — low enough that the traditional payday loan model doesn't work here.

Who this is forThis guide is for Maine residents comparing a payday, cash-advance, or short-term loan, and anyone checking what is legally allowed before they borrow.

When to use itUse it before you accept any offer, so you can compare the total cost across more than one lender.

What this page covers

The 30% APR Cap
Licensing Applies Regardless of Lender Location
Why Traditional Payday Loans Don't Operate Here

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

Verify current licensing with the Maine Bureau of Consumer Credit Protection before applying.

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.

Sources: NCSL — Payday Lending State Statutes · CFPB — Payday Loans

Maine Payday Loan FAQ

Are payday loans legal in Maine?

Traditional payday loans are not viable in Maine. Its Consumer Credit Code caps loans under $2,000 at 30% APR.

What is the rate cap in Maine?

30% APR on loans under $2,000, with tiered finance charges by loan size.

Do lenders need a license in Maine?

Yes. A Maine Supervised Lender license is required.

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