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.
Virginia Loan Rules
High-cost payday lending is prohibited in Virginia under the Virginia Fairness in Lending Act (2020), which is enforced by VA SCC to protect residents from triple-digit interest charges. State law establishes a strict rate cap of 36% APR. Because a typical payday loan nationally charges about $15 per $100 for two weeks—or roughly 391% APR—short-term deferred presentment lenders cannot legally charge payday rates in Virginia. Any online payday loan offer advertising triple-digit rates exceeds Virginia legal limits, and a borrower must be at least 18 years old to sign a loan contract, as shown in the payday table below.
Borrowers in Virginia who need a small loan still have regulated, legal options that comply with state law. Licensed lenders can offer fixed-payment installment loans under the Virginia Consumer Finance Act / Short-Term Loan Act, where the maximum all-in APR is 129% for a $500 six-month loan, 50% for a $2,000 two-year loan, and 36% for a $10,000 five-year loan, as detailed in the installment table below. Federal credit unions also offer Payday Alternative Loans (PALs) ranging from $200 to $2,000 for 1 to 12 months, with a maximum 28% APR and an application fee up to $20 for members. Use the tables and links below to review every rule enforced by VA SCC and compare licensed lenders and credit unions in Virginia.
Payday loan rules in Virginia
| Legal status | Prohibited — rate cap 36% APR |
|---|---|
| Governing law | Virginia Fairness in Lending Act (2020) |
| Fee or rate cap | Capped at 36% APR (Fairness in Lending Act) |
| State regulator | VA SCC |
| Minimum borrowing age | 18 |
Installment loan rules and APR caps in Virginia
| Governing law | Virginia Consumer Finance Act / Short-Term Loan Act (Va. Code Ann. § 6.2-1500 et seq.; Va. Code Ann. § 6.2-1800 et seq.) |
|---|---|
| Required license | Consumer Finance License / Short-Term Lender License |
| Max all-in APR ($500 / 6 months) | 129% |
| Max all-in APR ($2,000 / 24 months) | 50% |
| Max all-in APR ($10,000 / 60 months) | 36% |
| Origination fee limit | Under Consumer Finance Act: 5% processing fee capped at $150. Under Short-Term Loan Act: monthly maintenance fee of 8% or $25/month, whichever is less. |
| Credit insurance rules | Allowed |
| State regulator | Virginia State Corporation Commission, Bureau of Financial Institutions |
Before you borrow in Virginia
- Verify the lender's license in Virginia. Confirm that the lender holds an active state license with VA SCC before sharing your bank account details or signing an agreement. You can also look up the company on NMLS Consumer Access (nmlsconsumeraccess.org), though not every state uses NMLS for every license type.
- Check the Truth in Lending disclosure box. Under the federal Truth in Lending Act and Regulation Z, every lender must give you a written disclosure showing the APR, finance charge, amount financed, and total of payments before you sign the contract.
- Compare the all-in APR and origination fee to state caps. Make sure the contract's all-in APR and any origination fee stay within the Virginia limits shown in the tables above, such as 129% on a $500 six-month installment loan under the Virginia Consumer Finance Act / Short-Term Loan Act. Covered active-duty servicemembers and their dependents are protected by the federal Military Lending Act, which caps covered credit at 36% Military APR.
- Review your right to cancel and payment stop protections. Check the payday table above to see how rescission (your right to cancel a loan shortly after signing) works in Virginia. If you set up recurring electronic bank debits, federal Regulation E lets you stop preauthorized withdrawals by notifying your bank at least 3 business days before the scheduled debit, though this does not cancel the debt.
- Check credit union Payday Alternative Loans (PALs). Before taking a higher-cost non-bank loan, see if you qualify for membership at a credit union in Virginia. Under NCUA rules, federal credit union PALs offer $200 to $2,000 for 1 to 12 months with a maximum 28% APR and an application fee of up to $20.
How online and tribal lenders fit Virginia law
Online lenders making consumer loans to residents of Virginia generally must be licensed by VA SCC and obey the rate caps set by the Virginia Fairness in Lending Act (2020) and the Virginia Consumer Finance Act / Short-Term Loan Act, regardless of where the lender is located. You can check whether a website is operated by a licensed lender by contacting VA SCC in Virginia or searching NMLS Consumer Access (nmlsconsumeraccess.org), though not every state uses NMLS for every license type. Some online lenders claim tribal sovereign immunity and argue that Virginia usury caps and licensing laws do not apply to their loans. Federal appeals courts have reached different results on tribal immunity in online lending: several decisions (2nd Circuit in 2014 and 2019, 4th Circuit in 2021, and 7th Circuit in 2021) supported states and the CFPB, while one decision (4th Circuit in 2019) found a lender protected by immunity.
Small-dollar lending in Virginia by the numbers
- Residents
- 8,657,769
- Median household income
- $101,899
- Loan company offices
- 167
- Loan companies
- 7
- Bank branches
- 1,851
- Banks
- 106
- Credit unions
- 95
- Pawn shops
- 197
Sources for Virginia counts: Financial provider totals come from our state directories, compiled using FDIC data for banks and bank branches, NCUA data for credit unions, company websites and public map listings for loan companies and offices, and Overture Maps data for pawn shops. Resident population and median household income figures come from the U.S. Census Bureau.
Detailed Virginia loan guides and local directories
Where to file a lending complaint in Virginia
If a lender operating in Virginia charges more than the statutory cap, lends without a required state license, ignores your right to cancel, or uses unlawful collection tactics, save copies of your loan contract, Truth in Lending disclosures, and payment records. You can submit a formal complaint to VA SCC in Virginia and to the federal Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. Be aware that no lender or debt collector can have you arrested or jailed for an unpaid consumer debt.
Loan rules FAQ: Virginia
Are payday loans legal in Virginia?
No, high-cost payday loans are prohibited in Virginia under the Virginia Fairness in Lending Act (2020), which is enforced by VA SCC across the state. State law sets a rate cap of 36% APR, making triple-digit deferred presentment loans unlawful to offer to Virginia residents.
What is the maximum APR on an installment loan in Virginia?
Under the Virginia Consumer Finance Act / Short-Term Loan Act, the maximum all-in APR on an installment loan in Virginia depends on the loan amount and repayment period. State rules set the limit at 129% for a $500 six-month loan, 50% for a $2,000 two-year loan, and 36% for a $10,000 five-year loan. Check the installment table above for specific rules on origination fees and credit insurance enforced by VA SCC in Virginia.
What is the minimum age to take out a small loan in Virginia?
You must be at least 18 years old to enter into a valid small-dollar loan contract in Virginia. This minimum borrowing age applies to both storefront locations and online lenders serving Virginia residents. Lenders will ask for government-issued identification to verify your age before issuing Truth in Lending disclosures.
Who regulates small-dollar lenders in Virginia?
Non-bank payday and installment lenders in Virginia are licensed and supervised by VA SCC under state law. Borrowers can verify a lender's license status by contacting VA SCC directly or by searching NMLS Consumer Access at nmlsconsumeraccess.org, though not every state uses NMLS for every license type. At the federal level, the Consumer Financial Protection Bureau (CFPB) also oversees federal lending disclosures and collection practices.
What should I do if a lender in Virginia charges more than the law allows?
If a lender charges fees or an APR above the legal limits in the Virginia Fairness in Lending Act (2020) or the Virginia Consumer Finance Act / Short-Term Loan Act, gather your loan agreement, Truth in Lending disclosure box, and bank statements. Report the violation to VA SCC in Virginia and file a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov. Remember that you cannot be arrested or jailed for an unpaid consumer debt.
How do I stop a lender from taking automatic payments from my bank account?
Under federal Regulation E, you have the right to stop preauthorized recurring electronic debits by telling your bank or credit union at least 3 business days before the scheduled transfer date. Your bank may ask for written confirmation within 14 days of an oral request, and you should also notify the lender in writing that you are revoking authorization. Stopping automatic bank debits prevents further withdrawals, but it does not cancel the debt.
Small-dollar loan rules in neighboring states
How we get our numbers: We review the Virginia Fairness in Lending Act (2020), the Virginia Consumer Finance Act / Short-Term Loan Act, and published rules from VA SCC in Virginia to summarize statutory loan limits and licensing rules. For installment loans, we use the maximum all-in APR—including interest, origination fees, and permitted administrative charges—for three standard benchmarks ($500 for 6 months, $2,000 for 24 months, and $10,000 for 60 months), based on state statutes and the state-by-state surveys of the National Consumer Law Center (NCLC). Your CU Partner is an independent educational website, not a lender or loan broker, and does not provide legal advice. Because laws and regulatory interpretations change, please confirm current rules with VA SCC before borrowing.
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).