Installment loans in West Virginia are legal, but state law caps what they can cost: at most 31% a year, and only on unsecured loans of $3,500 or less, according to the West Virginia Division of Financial Institutions. Bigger loans carry lower caps: 27% from $3,500 to $15,000, and 18% above that.

An installment loan is a personal loan you repay in fixed payments over months. West Virginia does not allow them at the triple-digit rates common elsewhere, and a lender charging more than 18% a year must hold a state Regulated Consumer Lender license to do it.

The caps, loan size by loan size

Installment loans in West Virginia are legal, but a lender charging more than 18% a year needs a Regulated Consumer Lender license. Even licensed lenders are capped at 31% APR on loans of $3,500 or less, 27% up to $15,000 and 18% above that, according to the West Virginia Division of Financial Institutions. The limits sit in West Virginia Code §46A-4-107, part of the Consumer Credit and Protection Act. The Division of Financial Institutions FAQ says these tiers took effect June 7, 2019, and they were still the law on the state code site as of September 2026. The rate falls as the loan grows:

Loan Maximum yearly rate Fees allowed
Unsecured, $3,500 or less 31% Up to a 2% nonrefundable processing fee
Over $3,500 up to $15,000, or secured by real estate 27% Up to about 2% origination; up to 5% if secured by real estate
Over $15,000 18% Up to about 2% origination
Late payment (any size) n/a 5% of the missed installment, no more than $30

Work out the payment and the true APR

Put in the loan as the lender quotes it. The APR here counts the fees as well as the interest, the way a Truth in Lending disclosure must.

The origination fee is

Monthly payment
APR with the fees counted
Cash in your hand
Total of payments
Interest
Fees
What the loan costs

Cash Interest Fees

The schedule, paying it off early and every state's capOpen the calculator

Installment loans in West Virginia are legal when made by a licensed Regulated Consumer Lender. State law caps the APR by loan size: 31% on loans of $3,500 or less, 27% on loans from $3,500 to $15,000, and 18% on loans over $15,000, according to the West Virginia Division of Financial Institutions. Any consumer loan priced above 18% a year requires that license.

A few other rules matter. Licensed lenders can't charge a prepayment penalty or build in a balloon payment (DFI). They can't charge you collection fees, per the DFI. On a refinance with the same lender inside 24 months, fees can't be charged again unless the earlier ones are rebated or the total stays under the cap. Rollovers as payday lenders use them aren't part of this structure.

The statute sets no minimum or maximum term, and no overall loan ceiling beyond the tiers.

Who has to hold a license

Installment loans in West Virginia are legal, but any lender charging a finance charge above 18% a year must hold a Regulated Consumer Lender license, and even licensed lenders are capped at 31% APR on loans of $3,500 or less (West Virginia Division of Financial Institutions). Payday loans are banned outright, so a licensed installment lender is the main legal option (MoneyLion). The West Virginia Division of Financial Institutions issues these licenses. Applicants must be a West Virginia corporation or one acceptable to the commissioner, pay $750 per office and post a surety bond of $100,000 to $200,000. You can check a lender's license by calling the DFI at 1-800-642-9056 or file a complaint there.

Offers above the cap, and a bill that stalled

An industry summary on Compacom, updated April 2026, says online installment lenders advertise APRs starting around 36%, above every state tier, and notes Attorney General enforcement against online lenders operating illegally. The same cap is why payday lending is effectively gone in the state. Our sources don't say how bank partnerships or tribal lenders fit in, so treat any quote above the table as a reason to call the DFI before signing.

Senate Bill 702 would have allowed 36% on loans up to $35,000 over 6 to 120 months. Its last recorded action was a referral to the Senate Finance Committee on February 12, 2026. It is not law.

Is there something cheaper?

Probably, but we couldn't source the details. We have no verified figures on credit union payday-alternative loans or named West Virginia assistance programs as of this writing. Ask your credit union directly what it offers and at what rate, and compare it with the tier your loan would fall under.

If you're about to close on a house

An underwriter will see this loan twice. The deposit shows on your bank statements, and a large unexplained deposit usually brings a request for a letter of explanation. The monthly payment then counts against you in your debt-to-income ratio, the share of monthly income already committed to debt.

If you can pay it off before you apply, do it. A licensed West Virginia lender can't charge you a prepayment penalty. Taking a new loan between approval and closing is riskier still, so tell your loan officer before you borrow.