Payday Loans in Virginia: How Short-Term Loans Work Since 2021
Page last reviewed: October 28, 2026 · Reviewed for accuracy by Betty Walsh
Virginia ended the two-week payday loan with 2020 reforms (HB 789 and SB 421) that took effect on January 1, 2021. Licensed short-term lenders now make loans of up to $2,500, repaid in equal installments over 4 to 24 months, at 36% interest plus a monthly fee.
| Lump-sum payday loans | Not allowed Short-term loans must be repaid in substantially equal installments |
| Short-term loans | Allowed Up to $2,500 for 4 to 24 months, at 36% interest plus a monthly fee of up to $25, with total fees capped at 50% or 60% of the loan |
| Installment loans | Allowed Consumer finance loans of $300 to $35,000 for 6 to 120 months, at up to 36% plus a processing fee of no more than $150 |
| Title loans | Capped Up to $2,500 for 6 to 24 months, at 36% plus a monthly fee of up to $15 |
| Regulator | State Corporation Commission, Bureau of Financial Institutions (BFI), toll-free (800) 552-7945 |
How to Get a Loan in Virginia
Most Virginia borrowers choose between a short-term loan of up to $2,500 and a larger consumer finance installment loan.
- Pick the loan: up to $2,500 over 4 to 24 months is a short-term loan; $300 to $35,000 over 6 to 120 months is a consumer finance loan.
- Submit one request through LendUp with your ID, income details and bank account. Lenders in our network review it, and you see the full cost before you sign. Short-term lenders must see a pay stub or other proof of income dated within the last 45 days.
- Before you sign, check that the contract names the right chapter of Title 6.2 and that the lender holds that Virginia license. You can cancel a short-term loan until 5 p.m. on the third business day.
Short-Term Loans in Virginia (Formerly Payday Loans)
Short-term loans are made under Chapter 18 of Title 6.2. Each one is repaid in substantially equal installments of principal, fees and interest, and only a licensee can make one, online or in a store.
| Rule | Virginia limit |
|---|---|
| Amount | Up to $2,500, and no more than $2,500 owed to one licensee at any time |
| Term | 4 to 24 months; shorter only if each monthly payment is no more than 5% of your verified gross or 6% of your verified net monthly income |
| Interest | Up to 36% simple a year |
| Monthly maintenance fee | The lesser of 8% of the original loan amount or $25, not added to the balance that earns interest |
| Total cost cap | Fees and charges can't exceed 50% of the loan amount on loans of $1,500 or less, or 60% on larger loans |
| Late and returned payments | A late charge of up to 5% of the payment, no more than $20, after 7 calendar days; a returned-payment fee of up to $25 |
| Loans at once | One short-term loan from any licensee, checked in a state database, and none while you owe a title loan |
| Right to cancel | Return the loan proceeds by 5 p.m. on the third business day after the loan |
| Paying early | Partial payments of $5 or more at any time, and a prorated refund of fees and interest if you pay off or refinance early |
Short-term lenders can't take a car title or any collateral other than a check, can't threaten criminal charges, and must wait 60 days after a default before suing. Open-end credit lines from non-bank lenders are limited to 36% interest plus a $50 yearly fee, and short-term and title lenders can't offer them.
Installment Loans in Virginia
Consumer finance companies licensed under Chapter 15 make loans of $300 to $35,000 over 6 to 120 months, in at least six substantially equal payments. Interest is capped at 36% a year on the unpaid principal, with no add-on interest or compounding.
| Charge | Virginia limit |
|---|---|
| Interest | 36% a year on the unpaid principal balance |
| Processing fee | The greater of $50 or 6% of the principal, never more than $150; refunded, less up to $50, if you repay within 30 days; on a refinance, no more than once in 12 months |
| Late fee | $20 if a payment isn't received within 10 days of the due date, once per payment |
| Returned check | Up to $25 |
| Anything else | Not allowed, apart from permitted insurance, GAP coverage and recording fees |
| Collateral | No lien on real estate |
| Paying early | In full, or in amounts of one or more full installments, at any time |
A loan made in violation of the licensing rules is void, and you can recover what you paid. A licensee that overcharges must refund the excess and owes you twice that amount as a penalty, plus court costs and attorney fees.
Title Loans in Virginia
Title loans under Chapter 22 mirror short-term loans: up to $2,500 over 6 to 24 months, at 36% plus a monthly fee of the lesser of 8% of the loan or $15, with total fees capped at 50% or 60%. You can have one at a time, and none while you owe a short-term loan. After a default, the lender's recourse is generally limited to the car: interest stops once it repossesses, and you can redeem the car before a sale and get any surplus.
Verify a Lender in Virginia
- Find the chapter on your contract: short-term loans must say they're made under Chapter 18, title loans under Chapter 22, and consumer finance loans under Chapter 15 of Title 6.2.
- Look the lender up on the SCC's website at scc.virginia.gov, or call BFI toll-free at (800) 552-7945 to confirm it holds that Virginia license.
- Match the name on the license to your loan agreement and the lender's ads; licensees can't advertise under any other name.
Complaints about a short-term lender must go to BFI in writing, with copies of your documents. You can also call the Attorney General's Consumer Protection Section at (800) 552-9963. Making short-term loans without a license is a felony, and the loan is void.
Your Rights in Virginia
- Three days to cancel. You can cancel a short-term or title loan by 5 p.m. on the third business day by returning the money.
- Two failed debits, then stop. After two failed attempts to debit your account, a short-term or title lender needs your new written permission to try again.
- A right to sue. A contract term that breaks the short-term or title loan law can't be enforced against you, and you can sue to recover your losses and attorney fees.
- Military borrowers. Virginia bars short-term and title loans to covered servicemembers and their dependents, and federal law caps most other loans to them at a 36% Military Annual Percentage Rate.
Virginia Lending Before the Reforms
- In 2019, under the old law, 83,107 Virginians took out 268,097 payday loans totaling nearly $111 million, at an average APR of 253%.
- Title lenders made 121,023 loans totaling more than $137 million to 102,815 borrowers in 2019, and 9,998 Virginians had their cars repossessed and sold.
Virginia Loan Questions
Are payday loans legal in Virginia?
Not the old two-week kind. Since January 1, 2021, licensed short-term lenders make installment loans of up to $2,500 over 4 to 24 months, at 36% interest plus a monthly fee of up to $25.
Can I cancel a short-term loan in Virginia?
Yes. Return the loan proceeds check or the amount you received by 5 p.m. on the third business day after the loan.
Can online lenders make loans to Virginians?
Only with a Virginia license. The short-term, consumer finance and title loan laws all apply to internet loans to Virginia residents, whether or not the lender has an office in the state.
How do I check a Virginia lender's license?
Check which chapter of Title 6.2 your contract names, then confirm the lender holds that license with the SCC's Bureau of Financial Institutions at scc.virginia.gov or (800) 552-7945.
Official Sources
General information, not legal advice. Facts on this page were checked against these sources on October 28, 2026.
- Code of Virginia §§ 6.2-1800 to -1829 - Short-term loans
- Code of Virginia §§ 6.2-1500 to -1543 - Consumer finance companies
- Code of Virginia §§ 6.2-2200 to -2227 - Motor vehicle title loans
- Code of Virginia § 6.2-303 and § 6.2-312 - Usury limit and open-end credit
- 10VAC5-200-80 - Short-term lending pamphlet (SCC rule)
- 10VAC5-200-60 - Posting of charges and BFI contact (SCC rule)
- Virginia Attorney General - Predatory loan warning (2021)
- CFPB - Rights under the Military Lending Act
LendUp isn't a lender. We pass your request to lenders in our network; offers aren't guaranteed, and we may earn compensation if a loan is funded.