The bill amends the existing laws governing small loan lenders by establishing a maximum annual interest rate of ninety-nine percent (99%) on loans, inclusive of any origination and closing fees. It allows lenders to provide loans up to five thousand dollars ($5,000) to a single borrower. The bill specifies that origination fees cannot exceed ten percent (10%) of the original loan amount, while closing fees are capped at four percent (4%).

Additionally, the bill introduces provisions for late payment fees and returned payment fees, which must be agreed upon in writing between the borrower and lender. The late payment fee is set at five percent (5%) of the delinquent payment or eighteen dollars ($18.00), whichever is greater, and the returned payment fee is capped at thirty dollars ($30.00).

Furthermore, the bill clarifies that, aside from the interest and fees outlined, no small loan licensee shall charge any other fees, except for credit insurance, lawful filing fees, and other specified charges. This legislation aims to enhance transparency and protect borrowers by regulating the costs associated with small loans. The act will take effect immediately upon passage.