State-by-State Payday Loan Laws

By: Javi Calderon
Know Your Payday Loan Fees: an Overview of Payday Loan Laws in all 50 States

Payday loan legislation is an issue that is decided at the State level, not by the federal government. Hence, each state has its own specific payday loan laws. While some have virtually outlawed the payday loan industry, other states have almost no restrictions on payday lending whatsoever. If you are considering applying for a payday advance loan make sure you know the specific regulations in your state first.

Alabama – The maximum loan amount in Alabama is $500 and finance charges can not exceed 17.5% of the original loan amount.

Alaska – Payday loans have a limit of $500 and the lender can only charge an origination fee of $5 or less, and interest of no more than %15 of the original amount of the loan.

Arizona – Payday loan lending is illegal in the State of Arizona.

Arkansas – Arkansas has a maximum of $400 for payday advance loans. Interest can not exceed 10% of the original loan, and an additional fee can not exceed $10.

California - California has a limit of $300 for payday loans. A fee for the loan can not exceed 15%.

Colorado - The maximum for a cash advance loan in California is $500 and the lender can charge no more than 20% of the loan in interest.

Connecticut – Connecticut does not offered any kind of deferred deposit loan.

Delaware – The maximum legal amount for payday loans in Delaware is $500.

District of Columbia - Payday loans are prohibited in Washington DC.

Florida – The limit for loans in Florida is $500 with a maximum interest rate of $10.

Georgia – The State of Georgia has outlawed payday loans.

Hawaii - The maximum limit for Hawaii is $600 and the fee cannot exceed $15 of the amount of the check provided as payment.

Idaho – Idaho has a limit of $1,000 for payday loans.

Illinois – The loan limit for Illinios is either $1,000 or 25% of the consumer’s total monthly income, whichever is less. The lender cannot charge more than %15.5 of the loan in interest.

Indiana – The limit for payday loans in India is $550, the first $250 have an interest rate of 15%. Between $250 and $400, the interest is 13% and above $400 the rate is $10.

Iowa – The maximum personal loan amount in the State of Iowa is $500. On the first $100 the interest rate is 15% and on subsequent $100 the interest can be no more than 10%.

Kansas – The maximum loan limit in Kansas is $500 and the interest rate can not exceed 15% of the cash advance.
Kentucky - Deferred deposit transactions can not exceed $500 in the State of Kentucky. By law the maximum fee is %15 of the loan.

Louisiana – Louisiana has a maximum loan amount of $350 and the fees can not exceed 16.75% of the amount of the loan.

Maine – The State of Maine does not allow payday lending.

Maryland – Payday advances are not available in Maryland.

Massachusetts – The State of Massachusetts does not allow loans of less than $6,000.

Michigan – The limit for a payday loan in Michigan is $600. The lender can charge a service fee and interest on the loan.

Minnesota – Minnesota has a $350 loan limit. Minnesota uses a system of escalating interest rates depending on the amount of the loan.

Mississippi – The maximum amount for a cash advance loan is $400 and the interest rate cannot exceed 10%.

Missouri – The State of Missouri allows payday loans up to $500. The accumulation of fees and interest cannot exceed 75% of the original amount of the loan.

Montana - Payday loans in Montana must be between $50 and $300 and the interest cannot exceed $25 of the loan.

Nebraska – Nebraska has a loan limit of $500 and the maximum interest that can be charged is 15%.

Nevada – In Nevada a consumer cannot take out a loan that exceeds 25% of their monthly income.

New Hampshire – The maximum loan limit is $500 and the interest rate can not exceed 36% APR.

New Jersey – New Jersey has no regulations on payday loan lending.

New Mexico – In the State of New Mexico a payday loan and all the fees and interest rates combined cannot exceed 25% of the customer’s total monthly income. Fees cannot exceed %15.50 of the original loan.

New York – In New York a loan cannot be offered that carries a triple-digit APR.

North Carolina – Payday loan lending is illegal in the State of North Carolina.

North Dakota - The maximum loan amount in North Dakota is $500 and the interest cannot exceed 20%.

Ohio – Ohio State laws cap cash advance loans at $500, and cannot have an interest rate higher than 28% annual percentage rate.

Oklahoma - Payday loans in Oklahoma can not exceed $500 and interest rates can not be more than 15%.

Oregon – Oregon does not have a limit for the maximum amount of a payday loan, but they have capped the interest rate at 36% APR.

Pennsylvania – Pennsylvania offers a maximum loan of $500, with an interest rate of up to 20% for the first $300 and only 7.5% additionally for subsequent $100 increments.

Rhode Island – The State of Rhode Island has a maximum of $500 for payday loans. Interest rates can only be 15% of the amount of the loan.

South Carolina – The maximum amount a payday loan can be is $550 in South Carolina, with a maximum 15% interest rate.

South Dakota – South Dakota has capped payday loans at $500.

Tennessee – Tennessee State law states that payday loans cannot exceed $500.

Texas – A loan consumer in Texas can not owe more than $500 in payday loans.

Utah – Utah has no regulations on payday loan amount or interest rates.


Vermont – Payday lending is not legal in the State of Vermont.

Virginia – The maximum amount for a payday advance in Virginia is $500. All loan fees cannot exceed 20% of the amount of the loan.

Washington – The maximum amount of a loan in the State of Washington is $700.

West Virginia – West Virginia has outlawed Payday lending. Interest rates can be up to 15% for $500 and no more than 10% for any money over the $500.

Wisconsin – Wisconsin allows payday loans up to $1,500 or 35% of the consumer’s monthly income, whichever is less.

Wyoming – Wyoming does not have a limit on the total amount of the loan.