Payday & Title Loans in Delaware

Lending rules in Delaware

General rules

• Every person desiring to transact the business of lending money in this State shall be required to obtain a license under this chapter. Source: 5 Del. C. § 2202(a) · verified Oct 9, 2026

Payday loans (deferred presentment)

• A short-term consumer loan can be at most $1,000. Source: 5 Del. C. § 2227(7) · verified Oct 9, 2026
• A borrower can have at most 5 short-term consumer loans from all lenders in any 12-month period. Source: 5 Del. C. § 2235A(a)(1) · verified Oct 9, 2026
• A short-term consumer loan has a stated repayment period of less than 60 days. Source: 5 Del. C. § 2227(7) · verified Oct 9, 2026
• No more than 4 rollovers of an existing short-term consumer loan are permitted. Source: 5 Del. C. § 2235A(a)(2) · verified Oct 9, 2026
• Licensees must use a common database to determine whether a borrower has outstanding loans and is eligible for a loan under the limits. Source: 5 Del. C. § 2235B(a) · verified Oct 9, 2026
• A borrower has the right to return any amount borrowed in full on or before the close of business of the business day following the day on which the sum has been disbursed without the incurrence of any fee or other charges. Source: 5 Del. C. § 2227(5) · verified Oct 9, 2026
• No licensee shall pursue or threaten to pursue criminal action against a borrower in connection with nonpayment of a short-term consumer loan. Source: 5 Del. C. § 2235A(a)(4) · verified Oct 9, 2026
• Delaware has no statutory rate cap on short-term consumer (payday) loans. 5 Del. C. § 2229 lets a licensee charge interest at "such daily, weekly, monthly, annual or other periodic percentage rate or rates as the agreement governing the loan provides." Source: 5 Del. C. § 2229 · verified Oct 9, 2026

Title loans

• A title loan has an originally stated repayment period of 180 days or less. Source: 5 Del. C. § 2250(4) · verified Oct 9, 2026
• A title loan borrower may rescind the loan for any reason up to the end of the business day following the day on which proceeds were disbursed, without incurring any fee, interest, or other charge. Source: 5 Del. C. § 2253(a) · verified Oct 9, 2026
• No title loan rollover can extend the repayment period beyond 180 days from original disbursement. Source: 5 Del. C. § 2254 · verified Oct 9, 2026
• If a title loan borrower fails to repay, the lender must offer a workout agreement requiring at least 10% net reduction of indebtedness every month before taking possession of the vehicle. Source: 5 Del. C. § 2255(a) · verified Oct 9, 2026
• The proceeds of the sale of a vehicle used as security satisfy all outstanding indebtedness, and the borrower is not liable for any deficiency. Source: 5 Del. C. § 2260 · verified Oct 9, 2026
• No licensee shall seek or threaten to seek criminal prosecution of a title loan borrower in connection with nonpayment. Source: 5 Del. C. § 2257 · verified Oct 9, 2026
• Delaware has no statutory rate cap on title loans. A title loan is a loan made by a licensee (5 Del. C. § 2250(4)), and 5 Del. C. § 2229 lets a licensee charge interest at "such daily, weekly, monthly, annual or other periodic percentage rate or rates as the agreement governing the loan provides." The title loan subchapter sets no rate ceiling. Source: 5 Del. C. §§ 2229, 2250(4) · verified Oct 9, 2026

Pawn loans

• No person shall carry on the business of a pawnbroker without first having taken out a license from the Division of Delaware State Police. Source: 24 Del. C. § 2310(a) · verified Oct 9, 2026
• The annual license fee for a pawnbroker is $50. Source: 24 Del. C. § 2313(a) · verified Oct 9, 2026
• A pawnbroker cannot charge more than 30 percent per month on loans secured by pledge of personal property. Source: 24 Del. C. § 2316 · verified Oct 9, 2026
• Every person applying for a pawnbroker license must effect fire insurance of $50,000. Source: 24 Del. C. § 2315 · verified Oct 9, 2026
• All goods purchased must be held for 18 days including weekends and holidays, subject to police inspection. Source: 24 Del. C. § 2304(a)(2) · verified Oct 9, 2026
• No pawnbroker can purchase from a person under 18 unless accompanied by a parent, grandparent, or guardian. Source: 24 Del. C. § 2307(a)(1) · verified Oct 9, 2026

Lenders in Delaware are licensed by the Delaware Office of the State Bank Commissioner. You can look up any license in its license search. See also online lenders and apps in Delaware.