Lincoln, Neb. — Nebraskans who take out installment loans could end up paying a higher interest rate under a bill that won first-round approval from lawmakers.
Senators voted 28-1 on Friday to advance the bill at the request of OneMain Financial, a loan company with branch offices in Nebraska.
The measure would allow lenders to charge interest of up to 29 percent per annum on installment loans. Current law lets them charge up to 24 percent per annum on principal amounts up to $1,000, and 21 percent on any remaining unpaid balance.
Company officials say they face intense competitive pressure from online, unregulated lenders that don’t have a brick-and-mortar presence in Nebraska.
The measure stalled last year amid criticism from some lawmakers that the current rate caps were already too high.