Installment Loans in Virginia

Lending rules in Virginia

General rules

• Charging more than 12 percent a year interest on a consumer loan needs a license from the State Corporation Commission, under the short-term loan, consumer finance or title loan chapters; a loan made without one is void. Source: Va. Code Ann. § 6.2-303(A) · verified Oct 9, 2026
• Making or brokering a short-term loan to a Virginia consumer requires a license from the State Corporation Commission, whether or not the lender has a location in Virginia. A loan made without one is void. Source: Va. Code Ann. § 6.2-1801(A)-(B), (D) · verified Oct 9, 2026

Payday loans (deferred presentment)

• A short-term loan can be at most $2,500. Source: Va. Code Ann. § 6.2-1816.1(1) · verified Oct 9, 2026
• A short-term loan must last at least four months. Source: Va. Code Ann. § 6.2-1816.1(2) · verified Oct 9, 2026
• A short-term loan can last at most 24 months. Source: Va. Code Ann. § 6.2-1816.1(2) · verified Oct 9, 2026
• A short-term lender can charge simple interest of up to 36 percent a year. Source: Va. Code Ann. § 6.2-1817(A)(1) · verified Oct 9, 2026
• A short-term lender can add a monthly maintenance fee of the lesser of 8 percent of the original loan amount or $25. Source: Va. Code Ann. § 6.2-1817(A)(2) · verified Oct 9, 2026
• A short-term lender's late charge cannot exceed $20. Source: Va. Code Ann. § 6.2-1817(B) · verified Oct 9, 2026
• Total fees and charges on a short-term loan of $1,500 or less cannot exceed 50 percent of the original loan amount (60 percent above $1,500). Source: Va. Code Ann. § 6.2-1818.3 · verified Oct 9, 2026
• A borrower can cancel a short-term loan by 5 p.m. on the third business day after the loan, by returning the proceeds. Source: Va. Code Ann. § 6.2-1816.1(5) · verified Oct 9, 2026
• If a short-term loan is paid off or refinanced early, the lender must refund a prorated part of the fees and charges. Source: Va. Code Ann. § 6.2-1818.2(F) · verified Oct 9, 2026
• Before making a short-term loan the lender must make a reasonable attempt to verify the borrower's income, with a document dated within 45 days. Source: Va. Code Ann. § 6.2-1818.4 · verified Oct 9, 2026

Statewide loan database

• Before making a short-term loan a licensee must query the real-time loan database run by a Commission-certified provider, and report each new loan and payoff by the close of business that day. Source: Va. Code Ann. § 6.2-1810(B)(1), (5) · verified Oct 9, 2026

Title loans

• A motor vehicle title loan can be at most $2,500. Source: Va. Code Ann. § 6.2-2215.1(1) · verified Oct 9, 2026
• A motor vehicle title loan must last at least six months, and at most 24 months. Source: Va. Code Ann. § 6.2-2215.1(2) · verified Oct 9, 2026
• A title lender can charge simple interest of up to 36 percent a year. Source: Va. Code Ann. § 6.2-2216(A)(1) · verified Oct 9, 2026
• A title lender can add a monthly maintenance fee of the lesser of 8 percent of the original loan amount or $15. Source: Va. Code Ann. § 6.2-2216(A)(2) · verified Oct 9, 2026
• Total fees and charges on a title loan of $1,500 or less cannot exceed 50 percent of the original loan amount (60 percent above $1,500). Source: Va. Code Ann. § 6.2-2216.4 · verified Oct 9, 2026
• After a title loan default the lender can repossess and sell the vehicle but, except when the borrower damages or hides it, cannot sue for a deficiency. The borrower gets 10 days written notice before repossession and 15 days before sale. Source: Va. Code Ann. § 6.2-2217(A), (B), (E) · verified Oct 9, 2026

Installment and consumer finance loans

• A consumer finance company can charge interest of up to 36 percent a year on installment loans, computed on the unpaid balance (no add-on interest). Source: Va. Code Ann. § 6.2-1520(A) · verified Oct 9, 2026
• A consumer finance company can make installment loans of $300 to $35,000, lasting 6 to 120 months. Source: Va. Code Ann. § 6.2-1520(A) · verified Oct 9, 2026
• A consumer finance company can charge a $20 late fee, once per payment, when a payment is more than 10 days late. Source: Va. Code Ann. § 6.2-1520(B) · verified Oct 9, 2026
• A consumer finance company can charge a loan processing fee of the greater of $50 or 6 percent of the principal, never more than $150. Source: Va. Code Ann. § 6.2-1520(C) · verified Oct 9, 2026
• Lending to individuals at more than the general 12 percent rate requires a consumer finance license from the State Corporation Commission unless the lender is licensed under the short-term or title loan chapters; a loan made without a license is void. Source: Va. Code Ann. § 6.2-1501(A), (F) · verified Oct 9, 2026

Pawn loans

• A pawnbroker can charge up to 10 percent a month on a loan of $25 or less, 7 percent on more than $25 and under $100, and 5 percent a month on $100 or more. Source: Va. Code Ann. § 54.1-4008(A) · verified Oct 9, 2026

Lenders in Virginia are licensed by the Virginia State Corporation Commission, Bureau of Financial Institutions. See also online lenders and apps in Virginia.