Loan Rates and Fees in California
Page last reviewed: March 27, 2026 · Reviewed for accuracy by LendUp
Payday Loan Costs in California
A licensed lender can charge up to $15 per $100 borrowed - labeled "finance charge" on your agreement - on loans up to $300 (face value of the check), with terms up to 31 days.
On a $255 loan due in 14 days, the maximum fee is $38.25, making your total repayment $293.25. Your agreement will show roughly 391% APR - that's the 14-day fee scaled to a full year, as required by federal disclosure rules.
- Rollovers are prohibited - a lender can't extend or renew your loan for an additional fee.
- The returned payment fee - labeled "NSF fee" or "returned check fee" on your agreement - is capped at $15; no late fee may be added on top of it.
- No separate database or verification fee is allowed; if your offer lists one, question the line item.
If an offer exceeds these limits, verify with the California Department of Financial Protection and Innovation (DFPI).
Installment Loan Costs in California
Lenders operating under the California Financing Law (CFL) use a tiered, declining-balance interest rate structure - you pay interest on what you still owe, not the original amount.
| Unpaid Balance | Maximum Rate |
|---|---|
| $0 – $2,499.99 | 2.5%/month (30%/year) |
| $2,500 – $9,999.99 | 36% annual simple interest + Federal Funds Rate |
| $10,000 and above | No state cap |
On loans under $2,500, the lender may also charge an administrative fee capped at 5% of the loan amount. On loans of $2,500 to $9,999.99, any administrative fee is included in the 36%-plus-FFR cap.
On a $2,000 loan at 30% annual interest for 12 months, you'd repay approximately $2,340 total - roughly $340 in interest plus $2,000 in principal, before any administrative fee.
- Refinancing restarts interest on the new balance - compare your remaining balance to the new loan's total of payments before you agree.
- The returned payment fee is capped at $15 - the same as payday loans above.
- Late fees and grace period: no state cap is set under the CFL for late fees - ask the lender for the exact amount and grace period before you sign.
- You can prepay in full at any time with no penalty - interest stops accruing on the payoff date. See the California installment loans page for repayment details.
If an offer exceeds these limits, verify with the DFPI.
What to Check on Your Offer
- Finance charge: can't exceed $15 per $100 borrowed (max $45 on a $300 check).
- APR: on a 14-day $255 loan, expect roughly 391% - the short term inflates this figure.
- Loan amount: check face value can't exceed $300, excluding fees.
- Interest rate: should stay at or below 2.5%/month (30%/year) on balances under $2,500, and no more than 36% annual simple interest plus the Federal Funds Rate on balances from $2,500 to $9,999.99.
- Administrative fee: capped at 5% of the loan amount on loans under $2,500; included in the rate cap on loans of $2,500 and above.
- Late fee: no state cap - ask the lender for the exact amount and grace period before you sign.
- Returned payment fee: shouldn't exceed $15 for either product.
- Total of payments: the single most important number - add up every scheduled payment to confirm it matches the "total of payments" line on your agreement.
- Military households: if you or your spouse are active-duty, the all-in cost can't exceed 36% MAPR under federal law - compare to the APR on your offer.
Official Sources
- California Deferred Deposit Transaction Law (Financial Code Division 10)
- California Financing Law (Financial Code Division 9)
- DFPI Consumer Services
- DFPI Licensee Search
Rules can change - confirm with the DFPI if an offer doesn't match what's shown here.