Loan Options in California

California allows both payday loans and installment loans, but each operates under different rules enforced by the DFPI. Payday lenders work under the California Deferred Deposit Transaction Law, which caps loan amounts, limits fees, and restricts you to one payday loan at a time. Installment lenders follow the California Financing Law, which allows longer repayment periods and larger loan amounts with different interest-rate caps.

The two products have very different cost structures and limits. Our California payday loans and California installment loans pages explain what applies to each. For a direct comparison of fees and caps, see Rates & Fees. If you want to avoid high-cost borrowing, check out alternatives available in California.

• Only one payday loan at a time. California tracks every payday loan through a statewide database, so lenders will see if you already have one open. This stops you from stacking multiple payday loans and getting buried in overlapping payments.
• Extended payment plan when you can't pay on time. If you can't repay your payday loan by the due date, the lender must offer you an extended repayment plan at no extra charge - at least once every 12 months.
• Every lender must hold a DFPI license. You can look up any lender's license before you apply. If a lender breaks the rules, you can file a complaint with the DFPI.
• Lenders have to give you written disclosures upfront. Before you sign, the lender must show you - in writing - all fees, the APR, total repayment amount, and your payment schedule. If they won't put it in writing, walk away.

Before you share any personal information with a lender, use the DFPI license verification tool and review our scams and safety checklist.