Miss. bill would raise interest on small loans

Miss. bill would raise interest on small loans

Mississippi borrowers could soon pay more for some kinds of loans if lawmakers approve a bill to allow higher interest rates.

House Bill 1396 would allow loan companies to charge 99 percent interest for loans up to $1,500. The current cap is 36 percent. It would also change amounts that could be charged for loans up to $4,000. For example, the new cap would be set at 74.83 percent interest for loans of $1,600 and 56.73 percent interest for loans of $4,000.

A loan for $1,500 would end up costing the consumer about $500 more than a $1,600 loan under the new rate structure.

Daily Journal
4/3/12