Compare legal limits, fees and the true cost of small loans in your state before you talk to any lender. Compare legal limits, fees and the true cost of small loans in your state.
Small-Dollar Loan Rules by State
Small-dollar non-bank lending in the United States is licensed and supervised mainly by states, and legal limits differ widely across all 50 states. One state may allow short-term deferred presentment loans with triple-digit annual percentage rates, while a neighboring state enforces a strict usury cap that bans high-cost payday lending altogether. This section puts every rule that applies to a small loan in each state on a single reference page, along with the state agency that enforces the law.
Select any state in the table below to review its payday loan rules, fixed-payment installment loan APR caps, and licensing requirements. Each state page summarizes the key statutes on one screen and links directly to our detailed guides on payday loans, cash advances, installment loans, and tribal loans, as well as local directories of loan companies, banks, credit unions, and pawn shops. Your CU Partner is a free, independent educational resource, not a lender or loan broker, and this summary does not constitute legal advice.
How to read the state loan rules table
- Payday loan status and limits. The payday columns show whether a state licenses deferred presentment lenders, the maximum loan amount allowed by statute, and the typical APR or statutory rate cap. Nationally, a typical payday loan charges about $15 per $100 borrowed for two weeks, which equals roughly 391% APR.
- Installment loan all-in APR column. Installment loans are repaid in fixed monthly payments over several months or years and follow separate state small-loan statutes. The table shows the maximum all-in APR on a $2,000, 24-month loan, including interest and mandatory fees such as an origination fee.
- What Prohibited status means. When a state is listed as Prohibited, state law enforces an interest and fee limit—called a usury cap—that prevents lenders from charging triple-digit payday loan rates. Residents in those states can still apply for licensed installment loans that stay within the rate cap or borrow from a credit union.
- Why bank, credit union, and online rules differ. Non-bank lenders making loans to a state's residents generally must hold that state's license and obey its cost caps, even when operating online. Chartered banks and federal credit unions follow federal banking and NCUA rules, such as the 28% APR limit on federal credit union Payday Alternative Loans (PALs).
- How to verify a licensed lender. Before signing a loan contract, check that the company is a licensed lender with the state regulator listed in the final column. You can also search NMLS Consumer Access (nmlsconsumeraccess.org), though not every state uses NMLS for every license type.
Summary of small-dollar loan rules across all 50 states
Use the reference table below to compare payday lending legal status, maximum loan sizes, typical payday APRs or rate caps, installment loan limits, and enforcement agencies across all 50 states. Choose a state name to open its full one-page legal summary.
| State | Payday status | Max payday loan | Typical APR or rate cap | Max APR ($2,000 installment) | State regulator |
|---|---|---|---|---|---|
| Alabama | Allowed | $500 | ~456% | No cap | AL State Banking Dept |
| Alaska | Allowed | $500 | ~435% | 31% | AK Div. of Banking |
| Arizona | Prohibited | — | Cap 36% APR | 41% | AZ Dept of Ins. & Fin. Inst. |
| Arkansas | Prohibited | — | Cap 17% APR | 17% | AR State Bank Dept |
| California | Allowed | $300 | ~460% | 31% | CA DFPI |
| Colorado | Prohibited | — | Cap 36% APR | 31% | CO Div. of Banking |
| Connecticut | Prohibited | — | Cap 12% APR | 36% | CT Dept of Banking |
| Delaware | Allowed | $1,000 | ~521%+ | No cap | DE State Bank Commissioner |
| Florida | Allowed | $500 | ~304% | 37% | FL Office of Financial Reg. |
| Georgia | Prohibited | — | Cap 16% APR | 32% | GA Dept of Banking & Fin. |
| Hawaii | Prohibited | — | Cap 36% APR | 32% | HI Div. of Fin. Inst. |
| Idaho | Allowed | $1,000 or 25% of gross income | ~652%+ | No cap | ID Dept of Finance |
| Illinois | Prohibited | — | Cap 36% APR | 36% | IL IDFPR |
| Indiana | Allowed | $605 | ~382% | 40% | IN Dept of Fin. Inst. |
| Iowa | Allowed | $500 | ~337% | 36% | IA Div. of Banking |
| Kansas | Allowed | $500 | ~391% | 38% | KS State Bank Commissioner |
| Kentucky | Allowed | $500 | ~391% | 40% | KY Dept of Fin. Inst. |
| Louisiana | Allowed | $350 | ~780% | 38% | LA Office of Fin. Inst. |
| Maine | Prohibited | — | Cap 30% APR | 30% | ME Bureau of Cons. Credit |
| Maryland | Prohibited | — | Cap 33% APR | 30% | MD Office of Fin. Reg. |
| Massachusetts | Prohibited | — | Cap 23% APR | 25% | MA Div. of Banks |
| Michigan | Allowed | $600 | ~369% | 30% | MI DIFS |
| Minnesota | Prohibited | — | Cap 36% APR | 33% | MN Dept of Commerce |
| Mississippi | Allowed | $500 | ~521% | 59% | MS Dept of Banking |
| Missouri | Allowed | $500 | ~462% | No cap | MO Div. of Finance |
| Montana | Prohibited | — | Cap 36% APR | 36% | MT Div. of Banking |
| Nebraska | Prohibited | — | Cap 36% APR | 30% | NE Dept of Banking |
| Nevada | Allowed | 25% of gross income | ~652%+ | 40% | NV Fin. Inst. Div. |
| New Hampshire | Prohibited | — | Cap 36% APR | 36% | NH State Banking Dept |
| New Jersey | Prohibited | — | Cap 30% APR | 30% | NJ Dept of Banking |
| New Mexico | Prohibited | — | Cap 36% APR | 36% | NM Fin. Inst. Div. |
| New York | Prohibited | — | Cap 25% APR | 25% | NY DFS |
| North Carolina | Prohibited | — | Cap 15% APR | 35% | NC Comm. of Banks |
| North Dakota | Allowed | $500 | ~521% | 36% | ND Dept of Fin. Inst. |
| Ohio | Allowed | $1,000 | ~28% | 31% | OH Dept of Commerce |
| Oklahoma | Allowed | $500 | ~391% | 56% | OK Dept of Cons. Credit |
| Oregon | Allowed | $500 | ~154% | 36% | OR Div. of Fin. Reg. |
| Pennsylvania | Prohibited | — | Cap 24% APR | 24% | PA Dept of Banking |
| Rhode Island | Allowed | $500 | ~261% | 26% | RI Dept of Bus. Reg. |
| South Carolina | Allowed | $500 | ~391% | No cap | SC Board of Fin. Inst. |
| South Dakota | Prohibited | — | Cap 36% APR | 36% | SD Div. of Banking |
| Tennessee | Allowed | $500 | ~460% | 49% | TN Dept of Fin. Inst. |
| Texas | Allowed | No limit (CSO Model) | ~662%+ | 35% | TX OCCC |
| Utah | Allowed | No state limit | ~652%+ | No cap | UT Dept of Fin. Inst. |
| Vermont | Prohibited | — | Cap 18% APR | 21% | VT Dept of Fin. Reg. |
| Virginia | Prohibited | — | Cap 36% APR | 50% | VA SCC |
| Washington | Allowed | $700 or 30% of income | ~390% | 29% | WA State DFI |
| West Virginia | Prohibited | — | Cap 31% APR | 33% | WV Div. of Fin. Inst. |
| Wisconsin | Allowed | No state limit | ~574%+ | No cap | WI Dept of Fin. Inst. |
| Wyoming | Allowed | $500 | ~521% | 30% | WY Div. of Banking |
State loan rules FAQ
Why do small-dollar loan rules differ from state to state?
Small-dollar non-bank lending is licensed and supervised mainly by individual states rather than a single federal rate law. Each state legislature sets its own usury cap, maximum loan size, rollover limit, and right to cancel (rescission) rules. Federal laws such as the Truth in Lending Act require uniform cost disclosures nationwide, but states control the maximum price a non-bank licensed lender can charge.
Which state's rules apply when I borrow money online?
Lenders making loans to a state's residents generally must hold a license from the borrower's home state and follow that state's rate and fee limits. If an online company is headquartered in another state, it is still expected to comply with the laws of the state where you live. You can confirm whether an online lender is licensed by contacting your state regulator or checking NMLS Consumer Access at nmlsconsumeraccess.org.
What is a state rate cap or usury cap?
A usury cap is the maximum annual percentage rate or fee that a state statute allows a lender to charge on a consumer loan. When a state calculates an all-in APR cap, the limit includes both the nominal interest rate and mandatory charges such as an origination fee. Any non-bank loan offer that exceeds the state's statutory cap violates state lending rules.
Where can I file a complaint against a small-dollar lender?
You can file a complaint with the state regulator listed in our table for your state and with the federal Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. Keep copies of your loan agreement, Truth in Lending disclosure box, and bank statements showing any disputed withdrawals. State regulators can investigate unlicensed lending, excessive fees, and collection violations.
What regulated small-loan option offers a lower cost than a payday loan?
Federal credit unions offer Payday Alternative Loans (PALs) regulated by the National Credit Union Administration (NCUA). Under NCUA rules, PALs range from $200 to $2,000 with repayment terms of 1 to 12 months, a maximum interest rate of 28% APR, and an application fee of up to $20. You must be a member of the credit union to apply.
Do special rate limits apply to active-duty military borrowers?
Yes, the federal Military Lending Act caps the cost of covered consumer credit at a 36% Military APR for active-duty servicemembers and their covered dependents. This 36% all-in cap includes interest, finance charges, credit insurance premiums, and application or participation fees. Lenders are also prohibited from requiring military borrowers to waive legal rights or submit to mandatory arbitration.
How we get our numbers: We compile small-dollar lending rules from state deferred presentment statutes, state small-loan and installment lending acts, and official guidance published by each state agency. To make installment loan limits comparable across all 50 states, we use the maximum all-in APR—including interest, origination fees, and permitted monthly maintenance charges—for standardized loan profiles ($500 over 6 months, $2,000 over 24 months, and $10,000 over 60 months), based on state statutes and the state-by-state surveys of the National Consumer Law Center (NCLC). Your CU Partner is not a lender or loan broker and does not provide legal advice. Because state statutes and administrative rules change, always confirm current limits with your state regulator.
Sources: Consumer Financial Protection Bureau (CFPB); National Credit Union Administration (NCUA); NMLS Consumer Access; Electronic Code of Federal Regulations — Regulation Z (12 CFR Part 1026); U.S. Census Bureau; National Consumer Law Center (NCLC).