(800) 250-6279
Title Loan Laws And Disclosures For Each State
Premier Title Loans is dedicated to providing transparent and responsible title loan lending services. Please review your state-specific disclosures before committing to a loan with a licensed lender. We do not offer title loans in every state, and regulations regarding interest rates, repayment terms, and loan amounts are subject to change. We may act as a broker or referral service in states we don’t service. In that case, your loan will be underwritten and serviced by a licensed lender in that state. For each state below, we’ve linked out to our site’s specific page where you can learn more about lending options, regulations, and requirements in that state. If your state isn’t linked out, then we either don’t service that state or are not aware of any other lenders that offer loans within that state. Last Updated: September 29, 2025.
Alabama allows short-term loans, including car title loans, under the Pawn Shop Act. Under the Pawn Shop Act, a title lender is considered a pawnbroker in Alabama and must be licensed within the state to offer secured loans.
A title loan lender may charge a maximum of 25% of the loan amount per month in interest. If a lender doesn’t receive payment within 30 days of the contract being signed, they can legally repossess your vehicle.
Alabama has very few restrictions regarding title loans and short-term lending overall. However, lenders are required to pay the state an annual fee to maintain their licenses and fully disclose title loan terms to consumers.
Alaska
Title loans are illegal under state law in Alaska. In Alaska, short term payday loans have a maximum loan amount of $500, a minimum loan term of 14 days, and a maximum APR of 36%.
Arizona allows title loans; however, the current state regulations make it tough to get approved for a loan. The maximum finance rates depend on your original loan amount. For example, if the loan amount is $500 or less, the maximum monthly finance rate is 17%. For a loan of more than $500 but no more than $2,000, the cap is 15%. For a loan of more than $2,000 but not exceeding $5,000, the monthly finance rate can be as high as 13%; for amounts exceeding $5,000, it’s 10%.
A title loan lender can charge a late fee of up to 5% of the unpaid installment loan balance if it’s not paid in full on the 10th day after the due date.
Some types of title loans are allowed in Arkansas, but most loans offered within the state are subject to a statewide interest rate cap of 17%. These interest rate caps do not always apply to national banks and other FDIC-insured lenders.
It is legal to get an auto title loan in California. As of 2020, title loans offered between $2,501 and $10,000 have a maximum interest rate of 36% plus the federal funds rate. The annualized interest rate for loans over $10,000 offered within California ranges from 40% to 100% and sometimes even higher.
Repayment terms for a title loan can go up to 48 months in some cases. If someone doesn’t repay the loan as agreed, the lender has the legal right to repossess the vehicle in California, sell it at auction, and recover the debt.
Colorado
Title loans fall under the deferred deposit lending laws in Colorado, and these restrictions significantly limit the interest rates and loan amounts that can be assessed. As of 2025, an interest rate of up to 45% can be charged on any amount up to $500. Due to these loan limits, there are very few title loan companies operating within the state.
Car title loans are allowed in Delaware with minimal restrictions. No caps or lending limits exist, and interest costs are not capped. However, the terms for most short term loans(including some title pawns) are limited to up to 180 days, including rollovers.
Under Delaware state law, the lender must provide a specific written disclosure in a “conspicuous” format. The borrower and lender must also work out an agreement before the car is repossessed for nonpayment. The customer has up to 10 business days to accept a workout agreement before the lender repossesses the vehicle.
District of Columbia
Title loans are prohibited in the District of Columbia.
In Florida, title loan lenders operate under the state’s consumer financing laws. Per the Florida Title Loan Act, title loan companies are licensed and regulated by the Office of Financial Regulation. To receive a loan, the borrower and lender must sign a written agreement that details the loan amount and the interest rate.
The loan agreement must clearly state that if you fail to repay the loan as agreed, the lender may repossess your car, sell it, and retain the proceeds up to the amount you owe, plus reasonable expenses to cover the costs of repossession and sale.
Your lender must notify you at least ten days before the vehicle is sold at auction, and the lender must give you an accounting of what you owe.
Title loans, known as title pawn loans within the state, are legal in Georgia. Repayment terms start at 30 days and can be extended if both the borrower and the pawnbroker agree.
If you fail to make your monthly payment, a pawnbroker in Georgia can immediately repossess your vehicle. If your lender repossesses your vehicle, you’re given 30 days to get it back. To get your car back, you must pay the costs associated with your repossession. These costs can include a storage fee of $250 max, tow fees, and any other legitimate charges related to your repossession.
If you can’t bring your loan current within 30 days, a lender can legally sell the vehicle at a state-licensed auction.
Hawaii
Title loans and payday loans aren’t allowed in Hawaii.
Idaho allows title loans, but there are some restrictions. One such limitation is that the title loan can only be up to 30 days long. Still, a loan renewal can occur unless the debtor has paid off the entire amount, given possession of the titled property to the lender, or the title lender has notified the debtor in writing that the agreement will not be renewed.
If the loan isn’t repaid within the agreed terms, the lender can sell the vehicle, with the borrower getting any remaining funds after the initial loan balance is settled.
While title loans are legal in Illinois, there are some legal requirements and restrictions. In 2009, the state passed the Illinois Consumer Installment Loan Act, which requires that data about every loan secured by a vehicle title be entered into a state database.
Title loan payments in Illinois can’t exceed 50% of the borrower’s gross monthly income, and balloon payments aren’t allowed. You must repay the loan in equal installments.
The only type of loan a title loan lender can offer is refinancing an existing title loan.
Indiana prohibits title loan lending. Short-term payday loans are permitted, subject to specific regulations, including a maximum loan amount of $550 or 20% of the borrower’s gross monthly income.
Iowa
Iowa prohibits car title loans. Short-term payday loans, up to $500, may be available, with terms limited to 31 days.
In Kansas, installment loans are allowed, but lump-sum loans aren’t. Title loans are structured as open-ended credit because a licensed lender has no rate cap for this type of credit. While title loan lenders operate under the open-end credit code, no statute authorizing vehicle title lending exists.
Title loans are allowed in Kentucky, and as of 2025, there are no limits on the repayment term or maximum loan amount. Short-term payday loans are also allowed within the state, with a maximum term of 60 days and an APR of up to 460%.
Louisiana has state restrictions on short-term loans. Lenders cannot offer loans for under $350, and the terms must be longer than two months. The legal maximum amount of interest that can be charged in Louisiana is 12% monthly, with a few exceptions for mortgages and borrowing for business or commercial purposes.
Maine
Maine doesn’t allow title loan lenders to operate. Maine’s legal maximum interest rate is 6% unless otherwise agreed.
Under Maryland law, a title loan is a consumer loan. That means lenders must follow consumer loan licensing requirements and interest rate legal caps. The maximum legal interest for consumer loans in Maryland is 33%.
Massachusetts
Title loans are considered illegal in the state of Massachusetts. Under state law, no one can make loans of $6,000 or less if the amount payable for interest and expenses exceeds 12% annually on the loaned amount without first obtaining a license from the Commission of Banks.
Many types of title loans are restricted in Michigan. Some types of auto equity loans and unsecured loans are allowed within the state, but you’ll have a tough time finding a lender that offers secured loans with your car’s title as collateral.
Title loan companies in Minnesota are subject to interest rate caps of 36%. Lenders must be licensed with the Minnesota Department of Commerce.
The Title Pledge Act dictates what can and can’t happen in title loan lending. As of 2025, the maximum loan amount is $2,500, and the monthly cost limit is 25%. Repayment terms are limited to 30 days, but most loans can be renewed for a 10% fee.
If a borrower in Mississippi fails to repay a car title loan and the car is sold, the borrower receives 85% of the surplus. The amount owed can’t be paid off with another title loan.
Missouri permits car title loans under the State’s Lending Laws. The maximum loan amount is $5,000. While renewals are allowed, at the third renewal, 10% of the loan must be paid down.
There are no caps on the loan costs. If you’re a consumer who obtains a title loan in Missouri, the lender can sell the vehicle if you fail to pay the full amount owed as agreed.
There is a licensing fee in Montana for title loan companies, and each license must post a bond of $10,000 for each location. A title loan typically has terms of 30 days, with the option for renewals. However, each renewal requires the borrower to reduce their principal by at least 10%.
Interest rates are limited to 25% for each 30-day loan portion of up to $2,000. For loans between $2,000 and $4,000, the interest rate is capped at 18% per 30-day period. There’s a 10% rate cap for loans over $4,000.
The title has to be clear of any lienholders in Montana, and the borrower can’t be threatened with a criminal process to collect on the loan.
Nebraska
Recently, a new law was signed, amending the Nebraska Installment Law. Now, lenders providing loans of less than $25,000 must be licensed by the State. The legal limit for interest rates in Nebraska is 16% as of 2025.
Title loans are permitted in Nevada, with the maximum amount up to the vehicle’s fair market value. There’s no cap on costs and interest rates. The term limits are 30 days, with up to six renewals for a maximum of 210 days if conditions are met.
Lenders can’t make criminal threats to collect a debt, and must consider a borrower’s repayment ability before lending money.
New Hampshire
Vehicle title loans aren’t allowed in New Hampshire.
New Jersey
Car title loans aren’t legal in New Jersey, and the interest rate cap for most consumer loans is 30%.
Under the New Mexico Small Loan Act, car title loans are permitted within the state, but interest rates are capped at 36% for loans funded between $2,500 and $10,000. A late fee of 5% may be charged to the borrower after ten days, and the lender can repossess the vehicle once the borrower has been delinquent for 30 days.
New York
Payday lending and car title loans aren’t allowed in New York. The state also caps interest rates and repayment terms for most unsecured loans, which makes it challenging for lenders to operate effectively within the state. The maximum interest rate with any short term loan in New York is 16% per year.
Title loan companies are mostly prohibited from offering loans in North Carolina, but there are still some avenues to use your vehicle as collateral for a loan. The annual interest rate cap for unsecured loans is 36%.
North Dakota
Title loan companies in North Dakota must abide by usury rate restrictions, which limit interest rates to 5.5% more than the current federal funds rate.
Title loans are offered by some lenders in Ohio, even though the interest rates are often capped at 28%. Some lenders get around these restrictions in Ohio by operating as CABs and offering lines of credit.
A title loan lender has to be licensed by the state of Oklahoma to offer loans. A licensee can only charge and collect an interest rate of not more than 17% monthly. There are limits on the amount of money a licensee can have outstanding per customer.
A lender must be licensed in Oregon and can’t charge more than 36% annual interest. The origination fee can be up to 10% of the loan amount, with a maximum of $30 upfront. Title loan repayment terms must be for at least 31 days and cannot exceed 60 days. Any loans of 60 days or longer become installment loans, and these cannot be secured by a vehicle.
Pennsylvania
Title loans are illegal in Pennsylvania because they violate the Loan Interest and Protection Law.
Rhode Island
It’s illegal to charge interest on a loan at a rate exceeding 21% within the state. These interest rate caps make it very difficult for title loan companies to operate within the state.
There are limits on short-term vehicle-secured loans in South Carolina. They can only be for an original period of one month, after which the lender may allow the loan to be renewed for up to six periods. It can be up to 240 days.
Title loan renewals are allowed, but accrued interest charges can not be added to the new loan amount. The lender must verify the borrower’s ability to repay the funds, and the loan amount cannot exceed the vehicle’s fair market value.
The Tennessee Title Pledge Act permits car title loans up to $2,500. The loan term limit is 30 days, during which a borrower can automatically renew. At the third renewal, the borrower must pay 5% of the original amount, plus any applicable fees and interest.
Title loans in Tennessee are subject to a 2% monthly interest rate, and lenders may charge up to 1/5 of the loan’s original amount in fees.
Texas allows car title loans with no cap on the maximum loan amount. As of 2025, there are no limits on fees or interest rates for most loans offered by a state-licensed lender. Single-payment advances and installment loans are permitted in Texas, provided the loan term does not exceed 180 days.
In 2004, the state legislature passed House Bill 189, which fully regulated title loan companies in the state of Utah. The title lender must register with the state and post the interest or fees charged in connection with a loan, in accordance with the Truth in Lending requirements.
Only one loan can be provided up to the fair market value of a vehicle at a time. The loan may be renewed, and the interest rate or costs aren’t capped.
If the lender repossesses a car, the borrower receives any surplus from the sale proceeds. Utah law requires lenders to verify a borrower’s ability to repay the loan, and only one loan is permitted per vehicle. Rollovers without a borrower’s request are also prohibited.
Vermont
Title loans aren’t legal in Vermont because the interest rate may exceed the state’s allowed limit.
Virginia state law allows title loans of up to 50% of the fair market value of a vehicle. Interest rates are capped at 22% monthly on all balances of up to $700. For balances of $701 to $1,400, the cap is 18%. A 15% interest rate cap applies to loans of $1,401 and above. A 5% late fee payment is allowed once the loan is seven days past due.
Payment terms in Virginia range from 3 to 12 months, and rollovers and renewals are not permitted.
The lender must provide a 10-day notice of repossession. If a vehicle is sold, any surplus funds must be returned to the borrower.
A borrower can’t have more than one lien or loan at a time, there can’t be prepayment penalties, and Virginia law prohibits providing these short-term loans to active-duty military members.
If they have the proper endorsement from the state, some lenders may make small loans of up to $700 at interest rates that otherwise exceed the caps in Washington State. Otherwise, there is a cap on interest rates of 12% per year, and these interest rate caps effectively limit the ability of companies to offer title loans within the state.
West Virginia
Car title loan lending is outlawed in West Virginia. The state prohibits most types of short term loans.
Wisconsin law allows borrowers to provide title loans for up to 50% of the vehicle’s value, with a $25,000 total maximum. There’s no cap on interest rates, and the repayment term can be up to six months. Lenders are prohibited from requiring a vehicle key as security and must provide at least 20 days’ notice before repossessing a vehicle.
Wyoming
Lending laws in Wyoming require that loans secured by a vehicle title with a term of no more than 12 months adhere to specific guidelines. One requirement is that the lender must be licensed and bonded within the state to offer title loans. There is a limit of $30 or 20% per month on finance charges for the loan’s principal balance. Another regulation is that title loans can’t be repaid, refinanced, or consolidated using the proceeds from another short-term vehicle title loan or similar arrangement.
How Car Title Loans Are Regulated
Title loans are primarily regulated at the state level, and there are three broad categories that the above states might fall into. In a few states, title loans aren’t allowed under any circumstances. In other states, auto title loans are legally permitted but might have restrictions that govern the monthly payment, APR, and loan amount. In the third category, there may be loopholes where you can get a title loan, but your lender may not be fully licensed, or you’ll face limits when it comes to the loan amount and payoff terms. Often, these states ban most types of secured loans, but they may be able to structure a title loan so that it falls outside the legal definition of what’s regulated.
If you’re in a state that outright bans title loans, you may have to find an alternative funding option. Most states that outlaw title loans often have laws in place that also make it difficult to get an unsecured loan, but there are some exceptions. Contact Premier Title Loans at 800-250-6279 to learn more about lending options in your state.
