Loans in California: Payday & Installment Options

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The Department of Financial Protection and Innovation (DFPI) licenses payday and installment lenders in California. A payday loan is limited to a $300 check with a fee of up to 15%, so you get no more than $255 in cash. Installment loans under the California Financing Law (CFL) have rate caps that depend on the loan size.

Payday loans	Allowed A check of up to $300, fee included, held for up to 31 days. California payday loan rules
Installment loans	Allowed CFL loans of $2,500 to $9,999 at up to 36% a year plus the federal funds rate; tiered monthly rates below $2,500. California installment loan rules
Car title loans	Capped under $10,000 Made under the CFL, with the same caps by loan size; no statutory rate cap from $10,000
Regulator	Department of Financial Protection and Innovation (DFPI), 1-866-275-2677

Check Your Options Payday Loans Installment Loans

How to Get a Loan in California

California borrowers can choose a payday loan of up to $255 in cash or a licensed installment loan.

Pick the loan: up to $255 in cash due within 31 days is a payday loan; more money, or monthly payments, means an installment loan.
Submit one request through LendUp with your ID, income details and bank account. Lenders in our network review it, and you see the full cost before you sign.
Check the lender's DFPI license: Deferred Deposit Transaction Law for payday loans, California Financing Law for installment and title loans.

Check Your Options

Payday Loans in California

California calls payday loans deferred deposit transactions. You write the lender a personal check, it gives you cash minus its fee, and it agrees to hold the check until a set date, no more than 31 days away. The check can't exceed $300, and the fee can't exceed 15% of it.

You receive

$255

cash in hand

Max fee

$45

15% of the $300 check

You repay

$300

the face of your check

APR disclosed

~460%

on a 14-day term

A lender can't make you a new payday loan while an earlier one with it is still in effect, and can't let you pay one off with the proceeds of another.
If your check bounces, the lender can charge one fee of up to $15. No late fee is allowed.

Payday costs, limits and your rights

Installment Loans in California

Most non-bank installment loans in California are made under the California Financing Law. Since January 1, 2020 (AB 539), loans of $2,500 to $9,999 have been capped at 36% a year simple interest plus the federal funds rate. The federal funds rate was 3.88% in late October 2026, so that cap is now about 39.9%.

CFL installment loans

Loan size	Maximum charges
Under $2,500	2.5% a month on the first $225 of the balance, 2% on $225 to $900, 1.5% on $900 to $1,650 and 1% above that; or 1.6% a month on the whole balance
$2,500 to $9,999	36% a year simple interest plus the federal funds rate; repaid over at least 12 months
$10,000 or more	No statutory rate cap, but a court can refuse to enforce an unconscionable loan
Administrative fee	5% or $50, whichever is less, on loans of $2,500 or less; up to $75 on larger loans under $5,000
Late fee	$10 after 10 days or $15 after 15 days, once per late payment, on loans under $5,000
Returned payment	Up to $15
Paying early	Allowed in any amount at any time; no prepayment penalty

Loan amount

$3,000

24 monthly payments

Monthly payment

~$183.37

at about 39.9%

Interest

~$1,401

plus an administrative fee of up to $75

APR disclosed

~43%

if the $75 fee comes out of the loan

On a $1,000 loan repaid over 12 months at the tiered rates, the payment is about $95.56 and the interest about $147, plus an administrative fee of up to $50.

Installment rates, bad credit and your rights

Car Title Loans in California

A loan secured by your car is a CFL loan, so the same caps apply by loan size. If the lender repossesses the car, it must give you at least 15 days' written notice before selling it, and you can redeem it by paying the loan in full. You may also be able to reinstate the loan, once in any 12 months and twice over its term.

Verify a Lender in California

Official lookup tool DFPI licensee search

Search DFPI's licensee listing by the company's legal name.
Check the license type: California Deferred Deposit Transaction Law for payday lenders, California Financing Law for installment and title lenders.
Check that the license is active and that the name and address match your loan offer.
In a store, look for the posted license and fee schedule; payday lenders must display both.

For questions or complaints, call DFPI at 1-866-275-2677 or submit a complaint online. By mail, write to DFPI, Attn: Consumer Services, 651 Bannon Street, Suite 300, Sacramento, CA 95811. You can also contact the CFPB at (855) 411-2372.

Your Rights in California

Willful violations void the loan. If a payday or CFL lender willfully overcharges you or breaks the law in making or collecting the loan, no one can collect the principal or charges.
No criminal charges on payday checks. You can't be prosecuted or threatened with prosecution over a payday check, and the lender can't take collateral.
You can sue for damages. A payday borrower hurt by a violation can recover up to three times the damages, at least the amount paid, plus attorney's fees.
No prepayment penalty. You can pay a CFL installment loan early in any amount at any time.
Military borrowers. Federal law caps most loans to active-duty servicemembers and covered dependents at a 36% Military Annual Percentage Rate, and California treats a violation as a breach of its own lending laws.

California Lending by the Numbers

DFPI licensed 82 payday lenders at the end of 2025. During the year, licensed lenders made 5,772,939 payday loans worth $1.63 billion to 878,317 people.
The average payday loan was $251, at an average APR of 362% over 16 days.
Repeat loans to the same borrower made up 70.39% of payday loans, and 48.60% of those were made the same day the previous loan ended.
DFPI had 4,533 CFL licensees at the end of 2024. Leaving out real-estate and buy-now-pay-later loans, CFL lenders made 1.1 million consumer loans worth $16.3 billion that year.

California Loan Questions

Are payday loans legal in California?

Yes. DFPI licenses payday lenders under the California Deferred Deposit Transaction Law. The check you write can be up to $300 including a fee of up to 15%, so the most cash you get is $255, and the lender can hold the check for up to 31 days.

What is the interest rate cap on installment loans in California?

It depends on the loan size. Loans of $2,500 to $9,999 are capped at 36% a year plus the federal funds rate, about 39.9% in late October 2026. Smaller loans use tiered monthly rates, from 2.5% on the first $225 to 1% above $1,650. Loans of $10,000 or more have no statutory rate cap.

Can I have more than one payday loan in California?

Not from the same lender. California bars a lender from making you a new payday loan while an earlier one with it is still in effect. The law doesn't create a statewide database, so the rule applies lender by lender.

What if I can't repay a California payday loan on time?

Ask the lender for more time or a payment plan. It doesn't have to agree, but if it does, it can't charge any fee for it. If your check bounces, the lender can charge one $15 fee and can't threaten criminal charges.

How do I check a California lender's license?

Search DFPI's licensee listing by the company's legal name. Payday lenders hold a Deferred Deposit Transaction Law license; installment and title lenders hold a California Financing Law license. Call DFPI at 1-866-275-2677 if you can't find the lender.

Official Sources

General information, not legal advice. Facts on this page were checked against these sources on October 28, 2026.

LendUp isn't a lender. We pass your request to lenders in our network; offers aren't guaranteed, and we may earn compensation if a loan is funded.

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Loans in California: Payday and Installment Options