Payday Loan Laws by State, Simplified
                     Payday Loan Laws by State, 
Simplified
The law can be a tad bit confusing for many and even basic informati on can be a  
little diffi cult to “decode”. Read on for a better understanding of the same
Always Know The Law Of The Land Before Making Any Financial Decision!
It is not unknown that the United States of America follows the concept of decentralization, which  
means that all the power is not held by the central government solely. The federal government too,  
has its hands full when it comes to making the right decisions for its respective state and fortunately  
or unfortunately, payday loans come under the law by the state.
With regard to the interest rates allowed, rollovers and extensions, let’s find out the terms of online  
payday loans from direct lenders and whether a payday loan is legal or not is a choice made by every  
state government in the U.S.A and we bring to you information regarding the same, to help you  
know more about short term loans in your place of residence.
Alabama:
With the law not being completely against payday loans, they do allow the practice but have certain  
rules for the same.
Maximum Loan Amount: $500  
Minimum Term of Repayment: 10 Days  
Maximum Term of Repayment: 31 Days
Alaska:
Even though a little more strict than Alabama, Alaska allows the concept of payday loans to run in  
the state so that individuals who require a small sum of money or have bad credit find it fairly easy  
to avail finances.
Maximum Loan Amount: $500
Maximum Term of Repayment: 14 Days
Arizona:
Arizona is one amongst the states that does not allow the practice of payday loans.
Arkansas:
Just like Arizona, Arkansas also doesn’t allow payday loans to be practiced in the state.  
California:
Even though California does allow the business of payday loans to exist in the state, an individual  
cannot borrow more than $300. That however doesn’t mean that it’s of less importance. You can do  
a lot with $300 and can cater to financial requirements for groceries, to fix vehicles that have broken  
down, leaking pipes, or other such unanticipated situations that you may not have enough savings  
for. The repayment term however, is a fairly long one that gives borrowers a good number of days to  
pay back their loan.
Maximum Loan Amount: $300  
Maximum Term of Repayment: 31 Days  
Colorado:
With a slightly different approach towards payday loans, Colorado allows the practice but with the  
minimum repayment term being way more than most other states.
Maximum Loan Amount: $500
Minimum Term of Repayment: 6 Months
Delaware:
Delaware permits the business of payday loans and allows the transactions of such loans with a fair  
sum of money. This of course gives borrowers a wider range of situations to cater to such as funding  
medical emergencies, paying off other debts (debt consolidation), etc.
Maximum Loan Amount: $500
Term of Repayment: Less than 60 days.
District of Colombia:
The transaction of payday loans is prohibited in the state.
Florida:
While making terms clear for both payday and installment loans, Florida definitely allows the  
concept to exist in the state.
Maximum Loan Amount: $500 for loans that have to be repaid in lump-sum and $1000 for loans  
that are taken on the basis of an installment.
Terms of Repayment: 7-31 days for those loans that are not taken on the agreement of being paid  
back in installments and 60-90 for those that are.
Georgia:
The practice of payday loans is prohibited in the state.
Guam:
A state specific law for payday loans isn’t available.
Hawaii:
While allowing the concept to exist, Hawaii permits a decent amount of money that borrowers can  
avail from payday loan lenders.
Maximum Loan Amount: $600  
Maximum Repayment Term: 32 days 
 Idaho:
Idaho is another state that permits payday loan businesses to run, while allowing lenders to offer up  
to $1000 to help borrowers deal with financial emergencies without having to wait for a long time to  
receive money when they need it urgently.
Maximum Loan Amount: $1000
Loan Repayment Term: Not mentioned.
Illinois:
Illinois has different rules for different situations. For more information it is advised that you look up  
the laws regarding payday loans in your state and apply accordingly.
Indiana:
While taking into consideration the fact that every dire situation needs a decent amount of funding,  
Indiana states that a payday loan cannot be provided if one asks for less than $50.
Loan Amount: $50-$550
Loan Repayment Term: At least 14 days
Iowa:
While allowing payday loans to exist in the lending market, the rules laid down by this state includes  
the following:
Maximum Loan Amount: $500
Loan Repayment Term: Shouldn’t exceed more than 31 days.
Kansas:
A minimum of 7 days are required before one can repay his/her loan.
Maximum Loan Amount: $500
Loan Repayment Term: 7-30 days
Kentucky:
Kentucky allows a maximum of two loans to be borrowed from a particular lender at a single time.
Maximum Loan Amount: $500
Loan Repayment Term: Shouldn’t exceed 60 days.
Louisiana:
While making it clear that no short term loan’s interest can exceed $45, Louisiana’s payday loan  
rules include the following:
Maximum Loan Amount: $350  
Maximum Repayment Term: 30 days 
 Maine:
According to the laws stated by NCSL, “With respect to a consumer loan, other than a loan  
pursuant to open-end credit, a lender may contract for and receive a finance charge calculated  
according to the actuarial method, not exceeding the equivalent of the following: A. The total  
of:
(i) 30% per year on that part of the unpaid balances of the amount financed that is
$2,000 or less;
(ii) 24% per year on that part of the unpaid balances of the amount financed that is  
more than $2,000 but does not exceed $4,000; and
(iii) 18% per year on that part of the unpaid balances of the amount financed that is
more than $4,000”.
Maximum Loan Amount: Not given
Repayment Term: Not given
Michigan:
While allowing payday loans to be practiced in the state, Michigan has the following terms:
Maximum Loan Amount: $600
Repayment Term: 31 days
Minnesota:
Like California, Minnesota allows the exchange of payday loans in comparatively smaller amounts 
 that one can use in order to fulfill their basic monetary needs.
Maximum Loan Amount: $350  
Repayment Term: No more than 30 days 
 Mississippi:
Mississippi has some interesting terms listed down when it comes to the exchange of payday loans. 
 While taking the loan amount into consideration, they also have a policy wherein the total money  
borrowed/lent includes the interest.
Maximum Loan Amount: $500 (including interest)
Repayment Term: Not given
Missouri:
Payday loans definitely see a stability in the market with Missouri allowing the practice of it.
Maximum Loan Amount: $500
Repayment Term: 14-31 days
Montana:
Montana also has a minimum amount of a deferred deposit loan which is $50.
Maximum Loan Amount: $300
Repayment Term: Not given
Nebraska:
The use of payday loans is allowed in Nebraska and their terms include the following:
Maximum Loan Amount: $500
Repayment Term: 34 days
Nevada:
The terms of Nevada are a little different. Their laws demand that no borrower can borrow a loan that 
 exceeds 25% of their monthly income.
Repayment Term: No more than 35 days
New Hampshire:
While being in favor of the practice of payday loans, the rules and regulations of the state regarding 
 these short term loans include:
Maximum Loan Amount: $500
Repayment Term: 7-30 days
New Mexico:
New Mexico is against the business of payday loans.
North Carolina:
Just like New Mexico, even North Carolina is against the practice.
North Dakota:
One cannot borrow another payday loan if he/she already has an outstanding balance of $600 to be 
 repaid to other lenders.
Maximum Loan Amount: $500
Repayment Term: 60 days
N. Marina Islands:
Information regarding the same isn’t available.
Ohio:
While allowing a fair amount to be borrowed through payday loans, Ohio’s rules include:
Maximum Loan Amount: $1000
Repayment Term: Different for different circumstances.
Oklahoma:
Exclusive of the finances charges, Oklahoma allows the following amount of money in payday loan 
 transactions:
Maximum Loan Amount: $500 
 Repayment Term: 12-45 days  
Oregon:
According to NCSL, Oregon’s payday lenders are allowed to offer a huge sum of money to lenders 
 needing or wanting them.
Maximum Loan Amount: $50,000 
 Repayment Term: 31-60 days  
Puerto Rico:
No information regarding payday 
loans is available for Puerto Rico.
Rhode Island:
While allowing payday loans to 
exist in the lending market, the 
terms of this state are:
Maximum Loan Amount: $500
Repayment Term: A minimum of 
13 days, no maximum period is 
mentioned.
South Carolina:
The state’s rules for payday loans 
are as follows:
Maximum Loan Amount: $550
Repayment Term: Not to exceed 
31 days
South Dakota:
South Dakota requires one to follow 
these rules with regard to the 
transactions of payday loans.
Maximum Loan Amount: $500  
Repayment Term: Not mentioned. 
 Tennessee:
There are rules regarding the aggregate face value from all outstanding checks from one 
particular  customer, which are as follows:
Maximum Loan Amount: Shouldn’t exceed $500
Repayment Term: 31 days
Texas:
Texas has a number of rules and regulations concerning payday loans, which are applicable to 
 different situations.
Utah:
Utah has stated rules regarding rollovers, which mentions that a rollover cannot be extended for more 
 than 10 weeks from the day the loan transaction was initially executed.
Virginia:
Their loan regulations include:
Maximum Loan Amount: $500
Repayment Term: A term of at least two times the borrower’s pay cycle.
Virgin Islands:
Information regarding payday loans for the state isn’t available.
Washington:
The laws regarding payday loans in Washington include:
Maximum Loan Amount: $700 or 30% of the gross monthly income of the borrower- whichever of 
 the two is lower.
Repayment Term: The lender must set the date of repayment on or after the borrower’s pay day 
 unless it is less than 7 days away in which case the next pay day or after that will be taken into  
consideration as the date of repayment of the payday loan.
Wisconsin:
Terms regarding repayment and amounts are unavailable.
Wyoming:
The information regarding payday loans for Wyoming are as follows:
Maximum Loan Amount: Not given.
Repayment Term: One calendar month.
With the article now coming to an end, you should know that the reason why such loans, even 
though  with a slightly higher interest rate than a traditional one, exist because same day payday 
loans are  given with no credit check which is a huge advantage to borrowers who need quick cash, 
or have  bad credit ratings.
Disclaimer: The information cited in the article has been gathered from the website of NCSL and has  
been written according to our best knowledge and understanding of the same. However, the  
information provided in this article is basic and since laws do change every now and then, one must  
look up more information depending on their situation and need for a payday loan in their state.