Payday Loans in Hawaii Ended in 2022: What You Can Borrow Now

No, you can't get a payday loan in Hawaii anymore. Since January 1, 2022, the closest option is a licensed installment loan of up to $1,500, repaid over 2 to 12 months at no more than 36% a year in interest.

What $300 to $1,500 Costs in Interest at 36%

Interest worked out at Hawaii's 36% cap, not offers from lenders in our network; a lender can charge less. Any loan fees come on top, so compare the APR and total of payments on your offer.

A shorter term costs less in total but more each month. On $500 or less you can repay in as little as 2 months; above $500 the shortest term is 4 months, and the longest is 12.

What Act 56 Changed, and When

Hawaii's installment loan law, Act 56 of 2021, was signed on July 1, 2021. It did two things at once on January 1, 2022:

• Ended payday loans. The law on deferred deposit transactions, Hawaii's payday loans, was repealed.
• Created a new license. Installment lenders must hold a DFI license, applied for through NMLS from that date.

Businesses that applied by March 1, 2022 could keep lending while DFI reviewed them; later applicants needed a license first. DFI describes the new installment lenders as the former payday lenders, and the six-month gap gave check cashers time to adapt.

The Rules Every Hawaii Installment Loan Follows

• No more than $1,500 from any one lender at a time, and one loan per customer.
• Interest of up to 36% a year on the unpaid principal, worked out up front.
• A 3-day wait before the same lender can make you another loan.
• Cancel by 5 p.m. on the third business day by returning the principal; the lender refunds any fees and interest you paid.
• One renewal at most. After that, you repay the balance.
• Prepay any time without a penalty, once past-due interest and fees are paid.

Married? You can each take a loan, as long as it's documented in your agreement with the lender.

Banks, Credit Unions and Lenders Outside Act 56

The installment loan law doesn't cover banks and other financial institutions under HRS chapter 412, non-depository financial services loan companies, open-end credit plans such as credit cards, or tax refund anticipation loans. A loan from one of them isn't held to Act 56's $1,500 limit or 36% cap; it follows the rules for that kind of lender.

Among licensed installment lenders, choice is thin: DFI's list of authorized small-dollar installment lenders, last dated February 8, 2024, names 3 companies.

Your Hawaii Loan Request in Three Steps

1. Decide the amount and term: up to $1,500, repaid over 2 to 12 months, or at least 4 months above $500.
2. Submit one request through LendUp. Lenders in our network review it, and any offer shows the APR, payments and total cost before you sign.
3. Check the lender's license and the total of payments before you sign. You can still cancel until 5 p.m. on the third business day.

Is the Lender on DFI's Installment List?

1. Search NMLS Consumer Access by the company's legal name or NMLS number; DFI licenses installment lenders through NMLS.
2. Cross-check DFI's list of authorized small-dollar installment lenders.
3. Turn down anything offered as a payday loan: Hawaii no longer allows them.

Questions or a complaint: Hawaii DFI at (808) 586-2820 or [email protected].

Common Questions

Official Sources

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