Personalloaner

California lending rules

Personalloaner covers 482 Census places in California, which together hold an estimated 32,542,747 people. Licensed lenders set personal-loan terms here under California law, and the sourced rules below reach every borrower in the state.

By the Personalloaner Editorial Team · Last updated 2026-09-16

Compare loan offers Run the numbers first

How we get paid: if you apply through the link above, a lending partner may send us a referral fee. It never changes the rate you are offered or what we publish. We are not a lender and we do not process applications. The lowest rates are only available to the most qualified applicants. Full disclosure.

Key rules for borrowers in California

RuleDetailSource
Maximum legal interest rate (usury cap) 7% per annum default; written contracts may set up to 10% per annum for consumer-purpose loans
Source says: "shall be 7 percent per annum"; "for use primarily for personal, family, or household purposes, at a rate not exceeding 10 percent per annum".		 California Legislature — California Constitution, Article XV, § 1
as of 2026-09-16
Payday lending status Permitted under the California Deferred Deposit Transaction Law; max $300 face amount; fee ≤15%; term up to 31 days
Source says: "The face amount of the check shall not exceed three hundred dollars ($300)"; "A fee for a deferred deposit transaction shall not exceed 15 percent of the face amount of the check" (Financial Code § 23036).		 California Legislature — Financial Code § 23035 (and § 23036)
as of 2026-09-16
Small-loan / installment lender licensing Finance lender/broker license required from the Commissioner of Financial Protection and Innovation (California Financing Law)
Source says: "No person shall engage in the business of a finance lender or broker without obtaining a license from the commissioner".		 California Legislature — Financial Code § 22100
as of 2026-09-16
State lending regulator California Department of Financial Protection and Innovation (DFPI)
Source says: "“Department” means the Department of Financial Protection and Innovation".		 California Legislature — Financial Code § 23001
as of 2026-09-16
36% rate cap on mid-size consumer loans (AB 539) Consumer loans of $2,500 to under $10,000: cap of 36% per annum simple interest plus the Federal Funds Rate
Source says: "charges at a rate not exceeding an annual simple interest rate of 36 percent per annum plus the Federal Funds Rate".		 California Legislature — Financial Code § 22304.5
as of 2026-09-16

Places we cover in California

The Census Bureau counts 482 places in California, and the largest are linked below.

Compare personal loan offers Run the numbers first

How we get paid: if you apply through the link above, a lending partner may send us a referral fee. It never changes the rate you are offered or what we publish. We are not a lender and we do not process applications. The lowest rates are only available to the most qualified applicants. Full disclosure.

Common questions

How high can interest rates legally go in California?
The answer turns on the product and on which statute applies to it. This page's table sets out California's usury cap and licensing rules, and each row carries its publisher and a link to the primary source.
What is California's position on payday lending?
Each state handles payday lending on its own: some permit it, some cap it, some prohibit it. The sourced row on this page gives California's current position.
How do I know a lender is licensed in California?
Consumer lenders generally need a licence issued by the state regulator identified on this page. Verify that licence with the regulator before you commit to anything.

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