An installment loan is repaid in fixed payments over months rather than in one lump sum from your next paycheck. Whether you can get one, and on what terms, is set by each state. States set rate caps by loan size, limit the fees a lender may add, and require a license above a certain rate. Some leave the rate to the contract.
The table gives the short answer for the 37 states we cover so far. Each line links to our page on that state, which has the statute, the regulator that licenses lenders, the limits in full and the sources they come from. The short answers are as of September 2026, when the state pages were written; type a state in the box to find it.
Installment Loan Laws by State
Installment loans, state by state (as of September 2026)
| State | In short | Full rules |
|---|---|---|
| Alabama | Alabama caps licensed installment loans of $1,500 or less at 3% a month on the first $200 and 2% after that. | Installment loans in Alabama |
| Alaska | Alaska's Small Loans Act caps installment loan interest by balance tier, limits fees and terms, and requires a state license. | Installment loans in Alaska |
| Arizona | Arizona caps licensed installment loans at 36% on the first $3,000. | Installment loans in Arizona |
| Arkansas | Arkansas caps most loans at 17% a year in its constitution. | Installment loans in Arkansas |
| California | California's rate caps on installment loans by size, the 2026 bank-partnership ruling, how to check a lender's license. | Installment loans in California |
| Colorado | Colorado caps installment loan rates at 36%, 21% and 15% by balance tier. | Installment loans in Colorado |
| Connecticut | Connecticut caps installment loans at 36% APR on smaller loans and 25% from $5,000 to $50,000. | Installment loans in Connecticut |
| Delaware | Delaware sets no rate cap on installment loans from licensed lenders. | Installment loans in Delaware |
| Florida | Florida caps installment loans at 36% on the first $10,000 under Chapter 516. | Installment loans in Florida |
| Georgia | Georgia caps interest at 10% on licensed loans of $3,000 or less and bans payday loans. | Installment loans in Georgia |
| Hawaii | Hawaii caps installment loans at $1,500, 12 months and 36% interest under HRS 480J. | Installment loans in Hawaii |
| Idaho | Idaho sets no fixed rate cap on licensed installment loans. | Installment loans in Idaho |
| Indiana | Indiana caps installment loan finance charges at 25% for most lenders and about 36% on the smallest balances for licensed lenders. | Installment loans in Indiana |
| Iowa | Iowa's new 36% cap on regulated installment loans took effect July 1, 2026. | Installment loans in Iowa |
| Kentucky | Kentucky caps licensed installment loans at $15,000 with tiered monthly rates and set fees. | Installment loans in Kentucky |
| Louisiana | Louisiana caps installment loan interest from 36% down to 21% by loan size, and the origination fee cap rose to $75 on August 1, 2026. | Installment loans in Louisiana |
| Massachusetts | Massachusetts caps licensed installment loans of $6,000 or less at 23% a year plus a $20 fee. | Installment loans in Massachusetts |
| Michigan | Michigan caps licensed installment loans at 25% a year plus a capped processing fee. | Installment loans in Michigan |
| Mississippi | Mississippi installment loans run on three legal tracks, with caps from 36% to over 300% APR. | Installment loans in Mississippi |
| Missouri | Missouri caps the structure of installment loans, not their price. | Installment loans in Missouri |
| Montana | Montana caps licensed installment loans at 36% a year. | Installment loans in Montana |
| New Jersey | What New Jersey law allows on installment loans: the $50,000 limit, term caps by loan size, licensing. | Installment loans in New Jersey |
| New Mexico | New Mexico caps installment loans of $10,000 or less at 36% APR, fees included. | Installment loans in New Mexico |
| North Dakota | North Dakota caps licensed installment loans at 36% a year, fees included. | Installment loans in North Dakota |
| Ohio | Ohio's installment loan rules as of September 2026: the three licenses, the rate and fee caps, the gaps. | Installment loans in Ohio |
| Oklahoma | Oklahoma caps small installment loans at 17% a month (about 204% APR) and $1,500 per borrower. | Installment loans in Oklahoma |
| Oregon | Oregon caps installment loans up to $50,000 at 36% APR, fees included. | Installment loans in Oregon |
| Pennsylvania | Pennsylvania caps licensed installment loans at 24% a year on $25,000 or less and holds unlicensed lenders to 6%. | Installment loans in Pennsylvania |
| Rhode Island | Rhode Island caps small installment loans at 24% to 36% APR, up to $5,000. | Installment loans in Rhode Island |
| South Carolina | South Carolina's installment loan rules: who must be licensed, the rate tiers by loan size, maximum terms. | Installment loans in South Carolina |
| South Dakota | South Dakota caps licensed installment loans at 36% APR, all-in. | Installment loans in South Dakota |
| Tennessee | Tennessee installment loans: the 36% rate cap, allowed fees, 3 to 25 month terms, the TDFI regulator. | Installment loans in Tennessee |
| Texas | Texas installment loan rules as of September 2026: Chapter 342 rate tiers, fee caps and term limits, the CAB route around them. | Installment loans in Texas |
| Virginia | Virginia caps licensed installment loans at 36% interest, $300 to $35,000, 6 to 120 months. | Installment loans in Virginia |
| West Virginia | West Virginia caps installment loan rates at 31%, 27% or 18% by loan size. | Installment loans in West Virginia |
| Wisconsin | Wisconsin sets no rate cap on licensed installment loans. | Installment loans in Wisconsin |
| Wyoming | Wyoming caps non-bank installment loans at 36% APR on the first $1,000 and 21% above it. | Installment loans in Wyoming |
No row matches that.
Summaries of our state pages. Laws change: each page gives the date its figures are from and links the regulator, where you can check a lender's license.
Free to reuse with credit and a link to this page (CC BY 4.0).
Before you take one out
Check that the lender holds a license in your state. Each state page names the regulator and how to look a lender up; a loan from an unlicensed lender may be void or uncollectible under some states' laws, and the page says where that is so.
If you are buying a home in the next few months, a new loan of any kind is something your lender will see. The repayments show up on the bank statements you hand over, and an open balance is a monthly payment that can count against your debt-to-income ratio. Every state page ends with what to raise with your loan officer, and What Not to Do Before Closing on a House and Denied After Pre-Approval cover why new debt late in the process is the risk it is.
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