What is a New Hampshire Title Loan?
A New Hampshire title loan is a title loan under the laws and regulations of New Hampshire. Title loans are secured by an asset the borrower has chosen as collateral. They tend to be short-term (often 30-day payment terms) and, being based on the value of the asset (usually a car), small in amount. They tend also, however, to feature high-interest rates, often as high as 25% per month, which amounts to an APR of 300%.
Since title lending has a history of being predatory, many states have made it illegal, while those in which it is still legal to have their own laws and regulations to protect borrowers, like limits on interest rates, loan amounts, and rollovers.
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New Hampshire title loans cannot have interest rates higher than 25% per month, which amounts to an APR of 300%. Additionally, lenders are not allowed to increase rates after renewing payment terms.
Title loans are asset-based, not credit-based, meaning all that is required to obtain one, generally speaking, is alien-free asset, such as a vehicle. Otherwise, most states simply require that applicants be 18 years of age or older, and have a government-issued I.D.
New Hampshire title loan laws state that:
399-A:2 – Lenders must be licensed.
399-A:18 – Interest rates must be 25% or less per month, and rates after renewing a title loan cannot be higher than in the original period.
399-A:19 – payment periods cannot be longer than one month, and cannot be renewed more than ten (10) times. In addition, at each renewal, the borrower must pay 10% of the remaining balance.