Loan Rates and Fees in Hawaii

Hawaii repealed its deferred deposit (payday loan) law effective January 1, 2022. Any payday loan contract signed after that date is void under state law. You should not see payday loan offers from Hawaii-licensed lenders.

If someone offers you a payday loan in Hawaii, verify their license with the Hawaii Division of Financial Institutions.

Hawaii licenses two types of installment lenders. Small-dollar installment lenders (loans of $1,500 or less) operate under the newer small-dollar lending framework in Chapter 412, Article 9, with a flat 36% APR cap that includes all interest, fees, and charges. Financial services loan companies handling larger consumer loans use a tiered declining-balance rate structure shown below.

Small-dollar loans ($1,500 or less):

• The APR - including interest and all fees - cannot exceed 36%.
• Maximum term is 12 months; minimum term is two months for loans of $500 or less, or four months for loans above $500.
• Monthly maintenance fees are capped at $25–$35 depending on the original principal amount and must be included in the 36% APR calculation.
• Rollovers are prohibited - when your loan comes due, the lender cannot extend it for an additional fee.

Larger consumer loans (financial services loan companies):

These tiered rates use a declining-balance method - you pay interest only on what you still owe. No separate origination fee is permitted under this rate structure.

On a $1,000 loan for 12 months under the tiered structure (36% on the first $750, 24% on the remaining $250), total interest is approximately $191, making total repayment roughly $1,191.

• Refinancing restarts interest on the new amount - compare your remaining balance to the new loan's total of payments before you agree.
• The returned payment (NSF) fee is capped at $20.
• You can pay early with no penalty - interest stops accruing on the date you pay off; see the Hawaii installment loans page for repayment details.

If an offer exceeds these limits, verify with the Hawaii Division of Financial Institutions.

• Returned payment fee: cannot exceed $20.
• Total of payments: add every charge on the agreement and confirm it matches the "total of payments" line before you sign.
• Military/MLA: if you or your spouse are active-duty military, federal law caps most loan costs at 36% MAPR.