Yes. Title loans are legal in Illinois, and lenders must follow 205 ILCS 670/1, 670/15(a), 670/17.5.
Title loan rules in Illinois at a glance
| Title-loan law | 205 ILCS 670/1, 670/15(a), 670/17.5 |
|---|---|
| Rate cap | 36% APR, calculated as a military APR (205 ILCS 670/15(a); 815 ILCS 123/15-5-5) — Illinois licenses title-secured loans |
| Repossession | Allowed after default |
| Owe the balance after the car is sold? | Yes, the lender may collect what the sale did not cover. Check the statute for any minimum balance |
| Lender license | Required (Consumer Installment Loan Act licence (IDFPR), incl. the licence for the exclusive purpose of making title-secured loans (205 ILCS 670/1)) |
| Statute | 205 ILCS 670/1, 670/15(a), 670/17.5; 815 ILCS 123/15-5-5; 38 Ill. Adm. Code 110 Subpart B |
Source: 205 ILCS 670/1, 670/15(a), 670/17.5; 815 ILCS 123/15-5-5; 38 Ill. Adm. Code 110 Subpart B (read the law). We last checked it against the statute on October 6, 2026. See title loan laws in every state.
What a title loan costs in Illinois
Under Illinois's rate rules, borrowing $1,000 for 12 months costs $205.55 in interest or fees, so you repay $1,205.55 (36% APR). Your offer may differ.
| Loan | Term | Interest and fees | Total repaid | APR |
|---|---|---|---|---|
| $1,000 | 12 months | $205.55 | $1,205.55 | 36% |
| $2,500 | 12 months | $513.86 | $3,013.86 | 36% |
| $5,000 | 12 months | $1,027.73 | $6,027.73 | 36% |
Check whether the lender adds any fees: the written disclosure must show the full cost and the APR with every fee included.
What happens if you can't repay
If you fall behind, the lender can repossess your car. Read the default and notice terms in your contract before you sign. If the car is sold for less than you owe, the lender may be able to collect the difference. Some states allow this only when the unpaid balance is above a set amount, so check the statute or ask the lender.
If you think you will miss a payment, call the lender before the due date and ask what options it offers.
How to check a lender in Illinois
Title lenders in Illinois must be licensed (Consumer Installment Loan Act licence (IDFPR), incl. the licence for the exclusive purpose of making title-secured loans (205 ILCS 670/1)). Search for the lender on the official license lookup before you sign. Complaints go to the Illinois Department of Financial and Professional Regulation. Lenditup does not check lender licenses for you (see how we verify).
Looking for a loan in Illinois?
A title loan puts your car at risk, so compare it with a personal installment loan first. If a title loan is still the right fit, you can send one request and see what lenders and lending marketplaces in our network offer.
Lenditup is not a lender. Sending a request does not mean you will be approved; each lender sets its own rates and terms within Illinois law.
Title loan questions for Illinois
01What is the most a title lender can charge in Illinois?
02What happens if I can't repay a title loan in Illinois?
03How do I check that a title lender is licensed in Illinois?
04Is Lenditup a title lender in Illinois?
Title loan laws in other states
- Alabama
- Alaska
- Arizona
- California
- Colorado
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Mexico
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Compare every state side by side on the state title loan law table, or read how title loans work and what lenders ask for.