Installment Loans in Washington

Lending rules in Washington

General rules

• Loans to Washington residents are covered by the Consumer Loan Act, and a lender cannot evade the rate cap by arranging loans online or through an agent or service provider. Source: Wash. Rev. Code § 31.04.025(1)-(3) · verified Oct 9, 2026
• Payday (small) loans are made under the Check Cashers and Sellers Act, so the Consumer Loan Act does not apply to them. Source: Wash. Rev. Code § 31.04.025(4)(d) · verified Oct 9, 2026

Payday loans (deferred presentment)

• A payday (small) loan cannot be more than $700, or 30 percent of the borrower's gross monthly income if that is lower. Source: Wash. Rev. Code § 31.45.073(2) · verified Oct 9, 2026
• Outstanding small loans from all licensees combined cannot exceed 30 percent of the borrower's gross monthly income (or $700, whichever is lower). Source: Wash. Rev. Code § 31.45.073(2) · verified Oct 9, 2026
• A small loan cannot end more than 45 days after it is made, unless borrower and lender both agree to an extension with no added fee or interest. Source: Wash. Rev. Code § 31.45.073(2) · verified Oct 9, 2026
• A licensee with a small loan endorsement can charge interest and fees of up to 15 percent of the first $500 of principal. Source: Wash. Rev. Code § 31.45.073(5) · verified Oct 9, 2026
• On principal above $500, interest and fees can be up to 10 percent of the amount over $500. Source: Wash. Rev. Code § 31.45.073(5) · verified Oct 9, 2026
• A borrower cannot get more than eight small loans from all licensees in any twelve-month period. Source: Wash. Rev. Code § 31.45.073(4) · verified Oct 9, 2026
• A licensee cannot lend to a borrower in default on another small loan until it is paid in full or two years have passed (the number is years). Source: Wash. Rev. Code § 31.45.073(2) · verified Oct 9, 2026
• A check casher or seller needs a small loan endorsement to its license, for each location where it makes small loans. Source: Wash. Rev. Code § 31.45.073(1) · verified Oct 9, 2026
• On request, a small loan of up to $400 must be converted to a free installment plan of at least 90 days. Source: Wash. Rev. Code § 31.45.084(1) · verified Oct 9, 2026
• For a loaned amount over $400 the installment plan must run at least 180 days. Source: Wash. Rev. Code § 31.45.084(1) · verified Oct 9, 2026
• If a borrower defaults on the installment plan, the licensee may charge a one-time default fee of $25. Source: Wash. Rev. Code § 31.45.084(3) · verified Oct 9, 2026

Statewide loan database

• The Department of Financial Institutions runs a database system licensees use to check a borrower's outstanding loans and eligibility; licensees must enter loan data when a loan is made. Source: Wash. Rev. Code § 31.45.093(1), (3) · verified Oct 9, 2026

Title loans

• A small (payday) loan licensee may only take a postdated check as security. It cannot accept title to property or any other property as collateral. Source: Wash. Rev. Code § 31.45.073(6) · verified Oct 9, 2026

Installment and consumer finance loans

• A Consumer Loan Act licensee can lend at up to 25 percent a year, by the simple interest method. This applies to consumer finance and title lenders licensed under chapter 31.04. Source: Wash. Rev. Code § 31.04.105(1) · verified Oct 9, 2026
• A Consumer Loan Act licensee can charge a nonrefundable origination fee of up to 4 percent of the first $20,000 and 2 percent after that. Source: Wash. Rev. Code § 31.04.105(2) · verified Oct 9, 2026
• A Consumer Loan Act licensee can charge a late penalty of up to 10 percent of an installment that is ten or more days late. Source: Wash. Rev. Code § 31.04.105(6) · verified Oct 9, 2026

Pawn loans

• A pawnbroker can charge interest of up to 4 percent for each 30-day period on loans of $100 or more. Source: Wash. Rev. Code § 19.60.060(1)(l) · verified Oct 9, 2026
• A pawnbroker can charge a $5 storage fee for each 30-day period, plus $5 more for storing a firearm. Source: Wash. Rev. Code § 19.60.060(3) · verified Oct 9, 2026

Lenders in Washington are licensed by the Washington State Department of Financial Institutions (DFI), Division of Consumer Services. See also online lenders and apps in Washington.