Loan Options in Virginia

Virginia banned old-style payday loans in 2020 and replaced them with short-term loans that have lower cost caps, mandatory income checks, and longer minimum terms. The Fairness in Lending Act took effect January 1, 2021, and any lender offering these products must hold a license from the Bureau of Financial Institutions. Installment loans are still available under separate consumer finance rules with their own rate and fee limits.

For dollar limits, APR caps, and fee breakdowns, see the Virginia Rates & Fees page. To compare your options side by side, visit the Installment Loans page.

Virginia's 2020 reforms added meaningful safeguards. Here are the key protections to know:

• All-in rate cap on short-term loans. The Fairness in Lending Act caps the total cost - interest plus fees combined - expressed as an annual rate. You can compare offers on a level playing field without hidden charges.
• Income check before approval. Licensed lenders must evaluate whether you can reasonably repay the loan. This reduces the debt-trap cycle where people roll over unaffordable loans again and again.
• Required licensing. Any lender offering consumer loans in Virginia must hold a license from the Bureau of Financial Institutions, which you can verify online. Unlicensed lenders operate outside state oversight, and their loans may be void under Virginia law.
• Limits on collection practices. Virginia law restricts how much of your wages can be garnished and prohibits certain aggressive collection tactics. Even if you fall behind, you retain legal protections against abusive recovery efforts.

Before sharing personal information with any lender, review the LendUp scams and safety guide and confirm the lender's license through the BFI licensing lookup.