A Brief Summary of Car Title Loan Laws by State

Looking for a title loan? Not every state allows car title loans, so it’s important to know your rights. Before you apply, check this summary of car title loan laws in states where the loans are still legal as of 7/2016.

Alabama

A company cannot charge more than 25% per month in interest. The repayment period must be at least 10 days and less than 31 days.

Arizona

When borrowing no more than $500, the monthly interest rate must not exceed 17%. For loans of $501 to $2,500, interest rates are capped at 15%. Loans of $2,501 to $5,000 come with interest rates of no more than 13%. Loans over $5,000 have a capped interest rate of 10%.

California

Title loan lenders must base approval for the loan on your monthly income. Loans are also limited to $2,500 or the lender must agree to the monthly interest rate cap of 15 to 30%.

Delaware

Loan terms and rollovers cannot exceed 180 days. There are no current caps on the fees or interest.

Florida

Interest rates cannot exceed 30% if you borrow $2,000 or less, 24% on loans of $2,001 to $3,000, and 18% on loans over $3,000. Loan terms cannot exceed 30 days without an extension approved by both the borrower and lender. A rollover is bound by the same interest rate caps.

Georgia

Title loans in Georgia require the lender to make it clear that you could lose your car if you do not pay back the loan as promised. In addition, they cannot charge more than 25% interest per month for the first three months and then 12.5% after that.

Idaho

Initial title loans cannot be longer than 30 days. If the loan is rolled over, it can only be rolled over three times before you must pay back a minimum 10% of the principal.

Illinois

Loans must be repaid in equal payments over a period of time at an interest rate of no more than 36% monthly. There is a $4,000 limit on the amount you can borrow. You cannot roll it over unless you’ve paid off at least 20% of the principal.

Kentucky

Loans are limited to $4,000 and cannot be rolled over more than three times. Loan terms are 30 days.

Louisiana

Loans up to $1,400 cannot have more than 36% in yearly interest. Loans of $1,401 to $4,000 cannot be higher than 27%. Loans of $4,001 to $7,000 are at a yearly interest rate of 24%. Finally, amounts over $7,000 cannot have yearly interest of more than 21%.

Mississippi

Title loan companies are limited to interest rates of 25% per month. Loan periods are from 2 to 10 months, and the amount you can borrow is capped at $2,500.

Missouri

Missouri title loans cannot be rolled over more than twice, unless a borrower has paid off at least 20% of the principal. Fees cannot exceed 10% of the principal.

Montana

Interest rates for title loans are capped at 36% per year. After six rollovers, 10% of the principal must be paid off.

Nevada

Title loans are due within 30 days, and it cannot be rolled over more than six times. Loans of up to 210 days are allowed if there is no balloon payment, and it’s free of any rollovers.

New Hampshire

Loans of up to $10,000 are allowed, but payments cannot be more than 35% of a borrower’s monthly income. Interest rates are capped at 25% per month.

New Mexico

Title loans are only allowed if the fees are no more than 10% of the principal for the first month and no more than 4% for additional months.

Oregon

Title loan terms are restricted to 31 to 60 days. Fees cannot be more than $10 for every $100 borrowed, up to a maximum of $30. Interest rates are capped at 36% per year.

South Carolina

Auto title loan lenders require minimum loan amounts of $601 or higher in order to bypass interest rate limits. The APR for title loans is 25% monthly.

South Dakota

Title loans are 30 days, but they can be rolled over if principal is first reduced by a payment of 10% or more after the fourth rollover.

Tennessee

Tennessee has some of the best protection in place. Interest rates cannot exceed 2% per month. The maximum loan amount is $2,500.

Texas

Borrowers are protected with severe interest rate caps of 10% per month. Loan terms cannot exceed 180 days.

Utah

There are no interest or loan amount caps in place. Rollovers are allowed if the borrower agrees to it.

Virginia

Title loan repayment must involve equal payments over a time span of 120 to 365 days. Interest rate caps are 22% for amounts up to $700, 18% for $701 to $1,400, and 15% for amounts over $1,400.