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Loan Laws by State

The same $500 loan can be legal, capped or prohibited depending on which side of a state line you stand on. Here is how the system actually works.

Small-dollar lending in the United States is regulated almost entirely at state level. The same $500 loan can be legal at $15 per $100 in one state, capped at 36% APR next door, and prohibited outright a state further on. These pages explain how the system works and where the lines fall.

Written by the Loan For Any Purpose USA lending team. Reviewed by the Loan For Any Purpose Editorial Review Team. Last reviewed September 10, 2026. We explain products we do not sell as well as the ones we do.

Payday loan rate caps by state

The three regulatory categories, which states sit in each, and how to find the exact figure for yours.

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Where payday loans are illegal

Outright bans, effective bans through rate caps, and what you can borrow instead in those states.

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Military Lending Act 36% cap

The federal protection covering active-duty service members and their dependents, and what it prohibits.

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Who regulates what

LevelWhat it controls
State legislature and regulatorWhether a product is allowed at all, maximum amounts, rate and fee caps, licensing, rollover rules, cooling-off periods and extended payment plans
Federal, Truth in Lending ActWhat must be disclosed and how, including APR and the total of payments
Federal, Military Lending ActA 36% Military APR cap and prohibited terms for covered service members
Federal, Equal Credit Opportunity ActProhibits discrimination, including on the basis of public assistance income
Federal, Fair Debt Collection Practices ActHow debts may be collected

How to check your own state in five minutes

  1. Search for your state's banking or financial regulation department.
  2. Look for the consumer lending or deferred deposit section, which lists the current caps.
  3. Check whether the lender you are considering appears on the licensee list for your state.
  4. Cross-check the figures at paydayloaninfo.org, which keeps a page per state.
Verify before you rely on thisState lending law changes, and a rule that was accurate last year may not be now. Everything on this page was last reviewed on September 10, 2026. Before acting on it, confirm the current position with your state banking or financial regulation department, or with paydayloaninfo.org, which maintains a page for every state.

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