Payday Loans in California: The $300 Limit, Fees and Other Options

Yes, payday loans are legal in California, but the law is tight. A payday loan can have a check face amount of at most $300, the fee cannot be more than 15% of that check, and the loan cannot last longer than 31 days. Lenders must hold a license from the state's financial regulator, and you cannot have a second payday loan while the first is still in effect. Larger loans fall under a different law with its own rate tiers.

Our directory lists 100 installment loan stores in California, all from one brand, and no payday or title stores yet. That reflects what we have collected so far, not what exists in the state. This guide therefore leans on the law itself.

Payday loans in California

California calls a payday loan a "deferred deposit transaction." You write the lender a personal check, the lender gives you cash minus a fee, and the lender agrees to wait before cashing the check. The Department of Financial Protection and Innovation (DFPI) licenses and oversees these lenders. DFPI's payday page describes the rules that follow.

• Size: the check cannot exceed $300 (Cal. Fin. Code § 23035(a)).
• Time: the lender may hold the check for up to 31 days (§ 23035(a)).
• Fee: at most 15% of the check's face amount (§ 23036(a)).
• One at a time: a lender cannot make you a new payday loan while an earlier agreement with you is still in effect (§ 23036(c)).
• No collateral: a payday lender cannot accept any collateral (§ 23035(c)(5)).
• No criminal penalties: you cannot face criminal penalties for failing to repay (§ 23035(b)).
• Extensions: a lender may offer an extension or payment plan but cannot charge an extra fee for it (§ 23036(b)).
• Returned check: if your bank returns the check unpaid, the lender may charge at most $15, with no late fee on top (§ 23036(e)).

A worked example

Say you write a $300 check, the largest the law allows. The fee can be up to $45 (15% of $300), so you would get $255 in cash. DFPI gives the same $255 figure. Our own arithmetic: paying $45 to borrow $255 for 14 days works out to an APR (annual percentage rate) of about 460%. A fee that looks small becomes a very high yearly rate because the loan is so short. Our guide on how APR works in payday and cash advance loans shows the math.

Installment loans in California

An installment loan is repaid in scheduled payments over months. Licensed finance lenders make them under the California Financing Law. Rates are capped in tiers on the unpaid balance, and the cap falls as the balance rises.

Loan size or slice of the balance	Cap	Law
Loan under $2,500: first $225 of unpaid principal	2.5% a month	Fin. Code § 22303(a)
Unpaid principal from $225 to $900	2% a month	§ 22303(b)
Unpaid principal from $900 to $1,650	1.5% a month	§ 22303(c)
Unpaid principal above $1,650	1% a month	§ 22303(d)
Loan from $2,500 up to (not including) $10,000	36% a year plus the Federal Funds Rate	§ 22304.5(a)

Our arithmetic for one month on a $1,000 balance: 2.5% of $225 is $5.63, 2% of $675 is $13.50 and 1.5% of the last $100 is $1.50. That totals about $20.63, or roughly 2.1% for the month. It is a ceiling on that charge, not what any lender actually charges.

We list 100 installment loan stores in California, all OneMain Financial. For how this product differs from a payday loan, see installment loans vs. payday loans.

Title loans and pawn loans in California

Our rules data holds no verified title loan rule for California, so we do not state limits here. DFPI publishes a consumer guide called "Automobile Title Loans: What Consumers Need to Know" on its loans page. Read it before borrowing against a car. For the general risks, see title loans explained.

For pawn, the law says a pawnbroker may charge up to 3% a month on unpaid principal, with a $3 monthly minimum when 3% would be less (Fin. Code § 21200(a)), and a pawn loan must run at least four months with redemption allowed at any time during that period (§ 21201(a)). Our directory lists no California pawn shops yet.

How to check a lender's license

Start at the Department of Financial Protection and Innovation. Its site has a "Search Who We Regulate" tool. California law says that offering, making or arranging a payday loan requires a license from the DFPI commissioner (Fin. Code § 23005(a)). Search the exact business name, and ask the lender for its license number if you cannot find it.

State rules that can matter

State	What the rule says	Law
California	Payday check face amount of at most $300; term up to 31 days.	Cal. Fin. Code § 23035(a)
California	Payday fee of at most 15% of the check's face amount.	§ 23036(a)
California	No new payday loan while an earlier one is in effect.	§ 23036(c)
California	A payday lender cannot take collateral, and a customer cannot face criminal penalties for non-payment.	§ 23035(b), (c)(5)
California	Payday license required from the DFPI commissioner.	§ 23005(a)
California	Installment tiers of 2.5%, 2%, 1.5% and 1% a month on loans under $2,500.	§ 22303
California	Loans of $2,500 to under $10,000: 36% a year plus the Federal Funds Rate.	§ 22304.5(a)

From our state rules data, last checked October 8, 2026. We have not yet confirmed all of these in the statute itself, so confirm with DFPI. Rules change. Check your state's page in the lender directory and the California page.

Where the stores we list are

We list stores in 83 California cities. The most we list in one place: Los Angeles (7), then Bakersfield, San Jose and Fresno (3 each). Sacramento, San Diego and San Bernardino have 2 each. These counts are small because our California coverage is thin, not because other stores do not exist. If you want to ask in person, try lenders near me, or look at online lenders licensed in California.

Options to consider first

These are general options, not recommendations of a particular provider:

• A federal credit union PAL. A payday alternative loan (PAL) is a small loan from a federal credit union. PALs I run $200 to $1,000 over 1 to 6 months, and PALs II go up to $2,000 over 1 to 12 months. The application fee is capped at $20 (12 CFR 701.21(c)(7)). The NCUA says the rate can reach 28% while its 18% ceiling stands.
• Ask for an extension. A California payday lender can offer a payment plan on an existing loan, but not for an extra fee (§ 23036(b)). Ask for it before the due date.
• 211. Call 211 or visit 211.org for local help with rent, utilities and food.

Frequently asked questions

Are payday loans legal in California?

Yes, from licensed lenders. They are limited to a $300 check, a fee of up to 15% and a term of up to 31 days.

How much can I borrow with a payday loan in California?

The check cannot be more than $300. After the maximum 15% fee, that means up to $255 in cash.

Can I have two payday loans at once in California?

No. A lender cannot make you a new payday loan while an earlier payday loan agreement with you is still in effect (Fin. Code § 23036(c)).

Can I go to jail for not repaying a payday loan?

California law says a customer cannot face criminal penalties for failing to repay a payday loan (§ 23035(b)). The lender can still use civil collection.

What is the most a California installment lender can charge?

It depends on size. Loans under $2,500 use monthly tiers from 2.5% down to 1% of the unpaid balance. Loans from $2,500 to under $10,000 are capped at 36% a year plus the Federal Funds Rate.

Sources

• Payday lenders, California Department of Financial Protection and Innovation, checked October 11, 2026.
• Loans, California Department of Financial Protection and Innovation, checked October 11, 2026.
• Cal. Fin. Code §§ 23005, 23035, 23036, 22303, 22304.5, 21200, 21201, via our state rules data, last checked October 8, 2026.
• 12 CFR 701.21, Loans to members (payday alternative loans), eCFR, checked October 11, 2026.
• Permissible Loan Interest Rate Ceiling Extended, National Credit Union Administration, February 2026.
• 211.org, United Way Worldwide, checked October 11, 2026.

We are not a lender. This is general information, not legal advice. Rules change; check California's current rules and the lender's own disclosures before you borrow.