Installment Loans in Washington, DC

Lending rules in Washington, DC

General rules

• Parties to a written instrument for the payment of money at a future time may contract for interest at a rate not exceeding 24% per annum. Source: D.C. Code § 28-3301(a) · verified Oct 9, 2026
• A creditor who contracts in writing for a greater rate than the Code permits forfeits the whole of the interest contracted to be received. Source: D.C. Code § 28-3303 · verified Oct 9, 2026
• No one may engage in the business of cashing checks for consideration without first obtaining a check casher license from the Superintendent (now the Commissioner of the Department of Insurance, Securities, and Banking). Source: D.C. Code § 26-302 · verified Oct 9, 2026
• The check casher chapter does not apply to banks, credit unions, trust companies, building and loan and savings and loan associations, the U.S. Postal Service, or anyone who cashes checks without consideration or a charge. Source: D.C. Code § 26-303 · verified Oct 9, 2026
• A licensed check casher may not at any time cash or advance any monies on a post dated check, and may not run a note or check discounting business on the same premises. Source: D.C. Code § 26-319(a)-(b) · verified Oct 9, 2026
• It is unlawful to engage in the District in the business of loaning money at a rate of interest greater than 6% per annum on any security without a money lender license. Source: D.C. Code § 26-901(a) · verified Oct 9, 2026
• Money lenders pay a license tax of $500 per annum to the District, and a license runs for no longer than 1 year. Source: D.C. Code § 26-901(a) · verified Oct 9, 2026
• Each money lender license application must be accompanied by a bond to the District in the penal sum of $5,000, renewed and refiled annually in October. Source: D.C. Code § 26-903 · verified Oct 9, 2026

Payday loans (deferred presentment)

• The District no longer authorizes deferred deposit (payday) loans by check cashers: the check casher chapter's definition of "deferred deposit" was repealed by D.C. Law 17-42 (2007), and the statute says "No licensee shall at any time cash or advance any monies on a post dated check." Other small loans are held to the 24% per year interest cap. Source: D.C. Code § 26-301(3) (repealed), § 26-319(b) · verified Oct 9, 2026

Installment and consumer finance loans

• A licensed money lender cannot charge or receive more interest than the lawful rate set by Chapter 33 of Title 28 on the actual amount of the loan, and that charge covers all fees, expenses, demands and services of every character. Interest cannot be deducted from the principal when the loan is made. Source: D.C. Code § 26-905 · verified Oct 9, 2026
• Under the money lender chapter, no such loan greater than $200 may be made to any one person. Source: D.C. Code § 26-905 · verified Oct 9, 2026
• A lender who contracts for or receives a greater rate than the chapter allows forfeits all interest and, in addition, forfeits to the borrower a sum equal to one-fourth of the principal. Source: D.C. Code § 26-905 · verified Oct 9, 2026
• Most loans where the borrower receives more than $2,500 are outside the interest chapter when the borrower is a nonprofit or the loan is for a business, commercial or investment purpose (not loans secured by the borrower's residence). Source: D.C. Code § 28-3301(d)(1) · verified Oct 9, 2026

Pawn loans

• No person may engage in business as a pawnbroker without first obtaining a license from the Mayor. Source: D.C. Code § 47-2884.02(a) · verified Oct 9, 2026
• No one except as the pawnbroker part authorizes may charge or receive interest, discount, fee or other consideration greater in the aggregate than the interest permitted by D.C. Code §§ 28-3301 to 28-3303 on a loan or application for a loan of $1,000 or less. Source: D.C. Code § 47-2884.10(a) · verified Oct 9, 2026
• A pawnbroker cannot sell a pawn or pledge until it has remained 6 months in the pawnbroker's possession, unless the pawner consents in writing. Source: D.C. Code § 47-2884.13 · verified Oct 9, 2026

Lenders in Washington, DC are licensed by the District of Columbia Department of Insurance, Securities and Banking. See also online lenders and apps in Washington, DC.