Payday loans in California
Payday loans are legal in California. A licensed lender may lend up to $255 and charge no more than 15% of the check amount. Every figure on this page was checked against California law on November 10, 2026.
- Status
- Legal
- Maximum loan
- $255
- APR, 14-day loan
- 460%
California payday loan rules at a glance
- Legal status
- Legal
- Maximum loan
- $255 (a $300 check, less the fee)
- Loan term
- (No more than 31 days)
- Maximum fee
- 15% of the check amount
- APR on a 14-day $100 loan
- 460%
- Loans at one time
- A licensee shall not enter into an agreement for a deferred deposit transaction with a customer during the period of time that an earlier written agreement for a…
- Rollovers
- Not allowed
- Repayment plan
- A licensee may allow an extension of time, or a payment plan, for repayment of an existing deferred deposit transaction but may not charge any additional fee or charge…
- Governing law
- Cal. Fin. Code §§ 23000 to 23106
Checked against California law on November 10, 2026.
What a $255 payday loan costs in California
- You borrow
- $255.00
- Fee
- $45.00
- You repay in 14 days
- $300.00
Based on California's maximum fee, repaid in one payment. Your lender's price may differ.
The short version
- Payday loans are legal in California and lenders must hold a state license.
- The most you can borrow on one loan is $255.
- The legal maximum on a $100, 14-day loan is $17.65, which is 460% APR.
- California Department of Financial Protection and Innovation handles licensing questions and complaints.
On this page
Are payday loans legal in California?
Payday loans are legal in California. A licensed lender may lend up to $255 and charge no more than 15% of the check amount.
The governing law is Cal. Fin. Code §§ 23000 to 23106. California Department of Financial Protection and Innovation licenses lenders and takes complaints.
Loan limits in California
- Loan size: up to $255 (a $300 check, less the fee)
- Loan term: No more than 31 days
- Loans at one time: A licensee shall not enter into an agreement for a deferred deposit transaction with a customer during the period of time that an earlier written agreement for a…
- Rollovers: Not allowed
- Repayment plan: A licensee may allow an extension of time, or a payment plan, for repayment of an existing deferred deposit transaction but may not charge any additional fee or charge…
What a payday loan costs in California
State law sets the price rule: 15% of the check amount.
On a $100 loan repaid after 14 days, the most a lender may charge is $17.65. You would repay $117.65, an APR of 460%. For comparison, most credit cards charge between 20% and 30% APR.
Before you deal with an online lender
- Look the company up with California Department of Financial Protection and Innovation. No license, no loan.
- Never pay a fee up front to get a loan. That is the mark of an advance-fee scam.
- Read the agreement for the finance charge, the APR and the due date before you give out bank details.
If you cannot repay a loan in California
Contact the lender before the due date and ask for a payment plan in writing. The state rule: A licensee may allow an extension of time, or a payment plan, for repayment of an existing deferred deposit transaction but may not charge any additional fee or charge…. On criminal threats: The customer cannot be prosecuted in a criminal action in conjunction with a deferred deposit transaction for a returned check or be threatened with prosecution. If a lender or collector breaks the rules, file a complaint with California Department of Financial Protection and Innovation and with the CFPB. Our guide to what happens if you don’t pay covers each step.
Lower-cost options in California
- Credit union payday alternative loans (PALs): $200 to $2,000 at no more than 28% APR.
- A payment plan with the landlord, utility or hospital you owe often costs nothing.
- Local assistance: dial 211 for rent, utility and food programs near you.
See all payday loan alternatives or work out a loan’s price with the cost calculator.
Free help in California
- 211Free, confidential referrals to local help with rent, utilities and food. Call 211.
- USA.gov: help paying billsGovernment programs for rent, energy, phone and medical bills.
- National Foundation for Credit CounselingNonprofit credit counselors who can set up a debt management plan. Call 800-388-2227.
- CFPB complaint portalFile a federal complaint about a lender or a debt collector.
Common questions
Are payday loans legal in California?
Yes. Payday loans are legal in California under Cal. Fin. Code §§ 23000 to 23106, and lenders need a state license.
How much can I borrow with a payday loan in California?
Up to $255 (a $300 check, less the fee) on a single loan.
What does a payday loan cost in California?
At the legal maximum, a $100 loan for 14 days costs $17.65. That equals an APR of 460%. A lender may charge less, so compare before you sign.
Can I roll over a payday loan in California?
State rule on rollovers: Not allowed. A rollover adds a new fee without reducing what you owe.
Can I be arrested for not repaying a payday loan in California?
No. The customer cannot be prosecuted in a criminal action in conjunction with a deferred deposit transaction for a returned check or be threatened with prosecution. A lender can still sue you in civil court, so never ignore a court summons.
Where do I complain about a lender in California?
Contact California Department of Financial Protection and Innovation. You can also file a complaint with the Consumer Financial Protection Bureau.
Does Northlight lend money?
No. Northlight is an information site. We explain the rules and the costs; we do not make loans or credit decisions.
Sources
Keep reading
- ColoradoColorado caps small loans at 36% APR, so high-cost payday loans are not offered. See what is allowed, what it costs and the alternatives.
- ArkansasPayday loans are not legal in Arkansas. Learn what the law says, why online offers are risky and which lower-cost options you can use instead.
- ConnecticutPayday loans are not legal in Connecticut. Learn what the law says, why online offers are risky and which lower-cost options you can use instead.
- ArizonaArizona caps small loans at 36% APR, so high-cost payday loans are not offered. See what is allowed, what it costs and the alternatives.
- DelawarePayday loans are legal in Delaware. See the loan limits, the rules lenders must follow and where to complain. Checked against state law in November 2026.
- AlaskaPayday loans are legal in Alaska. A $100 two-week loan can cost up to $20 (521% APR). See the loan limits, the rules lenders must follow and where to complain.