California law allows individuals to borrow up to $300 in payday loans. The repayment period for the loan cannot exceed 31 days. However, if you take out a loan of $300 or less, the maximum fee you can be charged is 15% of the total amount borrowed.
It is important to note that the maximum annual percentage rate (APR) for payday loans in California can be as high as 460%, which is why it is crucial to understand the terms and conditions of the loan before applying for it.
Moreover, California imposes strict regulations on lenders to protect borrowers from falling into a debt trap. For instance, lenders are prohibited from issuing loans to borrowers who have an outstanding loan or those who have taken out 3 or more loans in a 63-day period.
If you are unable to repay your payday loan on the due date, you can request an installment payment plan from the lender. The plan will give you more time to repay the loan by dividing it into smaller installments.
In summary, payday loans in California can be a useful financial tool if used responsibly. Before taking out a payday loan, make sure you have a plan to repay it on time, and only borrow what you can afford to repay.
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