Learn what regulations apply to payday loans in your state and what your alternatives are.
Regulations for payday loans vary greatly from state to state. Some states, like Oregon, place practically no restrictions on payday loans, while other states ban them entirely. The regulations of your state have a huge effect on what lenders can charge. As a borrower, it’s important for you to be aware of these regulations and to make sure your loan has the right terms and fees dictated by law.
Are payday loans available in your state?
Compare payday loans in your state
Payday lending regulations by state
|State||Legal||APR Regulations||Max Loan Amt||Loan Terms||Cost per $100||Small Loan Rate Cap|
|Alabama||Yes||456.25%||$500||10 – 31 days||$17.50||N/A|
|Alaska||Yes||520%||$500||Min: 14 days||$20||N/A|
|Arizona||No||N/A||N/A||N/A||N/A||36% per year plus 5% fee|
|Arkansas||No||N/A||N/A||N/A||N/A||17% per year|
|California||Heavily Regulated||459%||$300||Max: 31 days||$17.65||N/A|
|Colorado||Heavily Regulated||N/A||$500||Min: 6 months||$7.50||N/A|
|Connecticut||No||N/A||N/A||N/A||N/A||30.03% APR or $17 per $100 up to $600; $11 per $100 up to $1,800; add-on interest|
|Delaware||Yes||No Limit||$500 per loan, $1,000 max per borrower at a one time||Max: 60 days||No Limit||N/A|
|Florida||Yes||419%||$500||7 – 31 days||$16.11||N/A|
|Georgia||No||N/A||N/A||N/A||N/A||16% per year (10% per year discounted plus fees); 60% per year criminal usury cap|
|Hawaii||Heavily Regulated||459%||$600||Max: 32 days||$17.65||N/A|
|Idaho||Yes||No Limit||$1,000||Not Specified||N/A||N/A|
|Illinois||Heavily Regulated||403%||lesser of $1000 or 25% gross monthly income||13 – 45 days||$15.50||N/A|
|Indiana||Heavily Regulated||390%||$550 or 20% of gross monthly income||Min: 14 days||$15||N/A|
|Iowa||Heavily Regulated||433%||$500||Max: 31 days||$16.67||N/A|
|Kansas||Heavily Regulated||390%||$500||7 – 30 days||$15||N/A|
|Kentucky||Heavily Regulated||459%||$500||14 – 60 days||$17.65||N/A|
|Louisiana||Heavily Regulated||780%||$350||60 days or less||$30||N/A|
|Maine||Heavily Regulated||N/A||N/A||N/A||N/A||30% per year on amounts up to $2,000 or a fee of $5 for amounts financed up to $75; $15 for amounts financed $75.01-$249.99; or $25 for amounts financed of $250 or more.|
|Maryland||No||N/A||N/A||N/A||N/A||2.75% per month; 33% per year.|
|Massachusetts||No||N/A||N/A||N/A||N/A||23% plus $20 administrative fee upon the granting of a loan|
|Michigan||Heavily Regulated||390%||$600||Max: 31 days||$15||N/A|
|Minnesota||Heavily Regulated||390%||$350||Max: 30 days||$15||N/A|
|Mississippi||Heavily Regulated||520%||$500||Under $250: maximum of 30 days; $250 – $500: 28 – 30 days||$20||N/A|
|Missouri||Yes||1950%||$500||14 – 31 days||$75||N/A|
|Montana||Heavily Regulated||36%||$300||Max: 31 days||$1.39||N/A|
|Nebraska||Heavily Regulated||459%||$500||Max: 34 days||$17.65||N/A|
|Nevada||Yes||No Limit||25% of expected gross monthly income||Max: 35 days; up to 90 days allowed if the initial agreement provides for installment payments and is not subject to extension||No Limit||N/A|
|New Hampshire||Heavily Regulated||36%||$500||7 – 30 days||$1.38||N/A|
|New Jersey||No||N/A||N/A||N/A||N/A||30% per year|
|New Mexico||No||175%||N/A||Minimum maturity period of 120 days||N/A||N/A|
|New York||No||N/A||N/A||N/A||N/A||25% per year|
|North Carolina||No||N/A||N/A||N/A||N/A||36% per year|
|North Dakota||Yes||520%||$500||Max: 60 days||$20||N/A|
|Ohio||Heavily Regulated||28%||$500||Min: 31 days||$1.08||N/A|
|Oklahoma||Heavily Regulated||390%||$500||12 – 45 days||$15||N/A|
|Oregon||Yes||156%||Not specified||Min: 31 days||$13 for a 31-day loan||N/A|
|Pennsylvania||No||N/A||N/A||N/A||N/A||$9.50 per $100 per year for interest, plus a service charge of $1.50 per $100 per year.|
|Rhode Island||Yes||260%||$500||Min: 13 days||$10||N/A|
|South Carolina||Yes||390%||$550||Max: 31 days||$15||N/A|
|South Dakota||Yes||No Limit||$500||Not Specified||No Limit||N/A|
|Tennessee||Yes||459%||$425 ($500 check)||Max: 31 days||$17.65||N/A|
|Texas||Heavily Regulated||309.47%||Not specified||7 – 31 days||$11.87||N/A|
|Utah||Yes||No Limit||No Limit||May not exceed 10 weeks||No Limit||N/A|
|Vermont||No||N/A||N/A||N/A||N/A||18% per year|
|Virginia||Heavily Regulated||687.76%||$500||Min: 2 pay periods||$26.38||N/A|
|Washington||Heavily Regulated||390%||$700 or 30% of gross monthly income, whichever is less||Max: 45 days||$15||N/A|
|West Virginia||No||N/A||N/A||N/A||N/A||31% per year on a loan of $2,000 or less|
|Wisconsin||Yes||No Limit||Lesser of either $1,500 including fees or 35% gross monthly income||90 days or less||$30||N/A|
|Wyoming||Yes||780%||Not Specified||1 calendar month||No Limit||N/A|
|Washington DC||No||N/A||N/A||N/A||N/A||24% per year|
Alternatives if payday loans are illegal in your state
- You won’t be able to apply for a payday loan online as lenders still have to confirm your state of residence.
- You can consider applying for an installment loan. These are for similar amounts but are repaid over a longer term, usually 12 to 24 months.
- Auto title loans may fall outside the scope of payday regulations. These loans involve borrowing money against your car’s title in return for financing. Some states consider auto title loans the same as payday loans and ban them, so check your local laws.
- Explore even more alternatives to payday loans.
Payday loan options in states where they’re permitted
Here are some short term lenders you can consider. Availability and max amounts may vary based on your state of residence.
What are lenders allowed to charge you?
The Annual Percentage Rate, or APR, is one of the main costs you need to consider with a payday loan. In most states that regulate payday loans, you’ll find the APR is restricted. Otherwise, a lender may be able to charge as much as it wants. Make sure you know the total cost of a loan before you borrow.
Some states also impose restrictions on the percentage lenders may charge based on how much you borrow or in the total amount you can be charged in a year. These regulations usually only apply to interest rates, meaning a lender can charge fees on top of the interest rate or for refinancing your loan.
These fees have been regulated in some states, but in others they remain at the discretion of the lender.
How much you can borrow and how long you have to repay
States impose limits on loan amounts and terms. The typical state-imposed maximum being around $500 or 25% of your gross monthly income.
Payday loans are meant to last until your next payday. This means that a typical loan term will be two to four weeks, and many states have minimum and maximum terms. The length of your loan has a huge impact on the amount of interest you’ll end up paying. Make sure the amount you’re borrowing and the payment plan aligns with your budget as well as the prevailing state regulations.