Installment Loans in California

Lending rules in California

Rules marked "medium confidence" were checked against a published copy of the statute because the official site was unavailable to us. Confirm them with the official text before relying on them.

Payday loans (deferred presentment)

• A lender may offer an extension or payment plan on an existing payday loan but cannot charge any extra fee for it. Source: Cal. Fin. Code § 23036(b) · verified Oct 8, 2026 · medium confidence
• A customer cannot face criminal penalties for failing to repay a payday loan. Source: Cal. Fin. Code § 23035(b) · verified Oct 8, 2026 · medium confidence
• A payday lender cannot accept any collateral for a payday loan. Source: Cal. Fin. Code § 23035(c)(5) · verified Oct 8, 2026 · medium confidence
• Offering, making or arranging a payday loan requires a license from the commissioner of the Department of Financial Protection and Innovation. Source: Cal. Fin. Code § 23005(a) · verified Oct 8, 2026 · medium confidence
• A payday loan (deferred deposit transaction) can have a check face amount of at most $300. Source: Cal. Fin. Code § 23035(a) · verified Oct 8, 2026 · medium confidence
• A licensee may defer depositing the customer's check for up to 31 days. Source: Cal. Fin. Code § 23035(a) · verified Oct 8, 2026 · medium confidence
• The fee on a payday loan cannot exceed 15 percent of the check's face amount. Source: Cal. Fin. Code § 23036(a) · verified Oct 8, 2026 · medium confidence
• A lender cannot make a new payday loan to a customer while an earlier payday loan agreement for that customer is still in effect. Source: Cal. Fin. Code § 23036(c) · verified Oct 8, 2026 · medium confidence
• A lender may charge at most $15 for a check the bank returns unpaid, and no late fee on top of it. Source: Cal. Fin. Code § 23036(e) · verified Oct 8, 2026 · medium confidence

Installment and consumer finance loans

• On a California Financing Law loan under $2,500, a lender may charge up to 2.5 percent a month on the first $225 of unpaid principal. Source: Cal. Fin. Code § 22303(a) · verified Oct 8, 2026 · medium confidence
• On the part of unpaid principal between $225 and $900, the cap is 2 percent a month. Source: Cal. Fin. Code § 22303(b) · verified Oct 8, 2026 · medium confidence
• On the part of unpaid principal between $900 and $1,650, the cap is 1.5 percent a month. Source: Cal. Fin. Code § 22303(c) · verified Oct 8, 2026 · medium confidence
• On any unpaid principal above $1,650, the cap is 1 percent a month. Source: Cal. Fin. Code § 22303(d) · verified Oct 8, 2026 · medium confidence
• On loans from $2,500 up to (but not including) $10,000, a finance lender can charge at most 36 percent a year plus the Federal Funds Rate. Source: Cal. Fin. Code § 22304.5(a) · verified Oct 8, 2026 · medium confidence

Pawn loans

• A pawnbroker cannot charge more than 3 percent a month on the unpaid principal of a pawn loan. Source: Cal. Fin. Code § 21200(a)(1) · verified Oct 8, 2026 · medium confidence
• A pawnbroker may charge a minimum of $3 a month when 3 percent would come to less. Source: Cal. Fin. Code § 21200(a)(2) · verified Oct 8, 2026 · medium confidence
• A pawn loan must run for at least four months, and the customer can redeem the item at any time during that period. Source: Cal. Fin. Code § 21201(a) · verified Oct 8, 2026 · medium confidence

Lenders in California are licensed by the California Department of Financial Protection and Innovation (DFPI). See also online lenders and apps in California.