Personalloaner

Pennsylvania lending rules

Personalloaner covers 1,013 Census places in Pennsylvania, which together hold an estimated 5,602,115 people. Licensed lenders set personal-loan terms here under Pennsylvania law, and the sourced rules below reach every borrower in the state.

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

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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 Pennsylvania

RuleDetailSource
Maximum legal interest rate (usury cap) 6% per annum maximum for loans of $50,000 or less where no lower rate is contracted (41 P.S. 201(a)).
Source says: "the maximum lawful rate of interest for the loan or use of money... shall be six per cent per annum" (Loan Interest and Protection Law, Section 201(a)).		 Pennsylvania General Assembly (Laws of Pennsylvania, Act 6 of 1974)
as of 2026-09-16
Payday lending status No separate payday-lending license; non-bank lenders are limited to 6% (unlicensed) or up to 24% (CDCA-licensed), so high-cost payday loans are not permitted.
Source says: "if a lender is licensed by the Department in accord with the CDCA, it can charge between 6-24% on loans under $25,000" (DoBS interpretive letter, May 11, 2023).		 Pennsylvania Department of Banking and Securities
as of 2026-09-16
Small-loan / installment lender licensing Consumer Discount Company Act license required for non-mortgage consumer loans above 6%; licensed lenders may charge up to 24% on loans of $25,000 or less.
Source says: "A consumer discount company is a business corporation that negotiates or makes non-mortgage loans or advances of money on credit."		 Pennsylvania Department of Banking and Securities
as of 2026-09-16
State lending regulator Pennsylvania Department of Banking and Securities (DoBS)
Source says: "The Department of Banking and Securities regulates financial services in Pennsylvania."		 Pennsylvania Department of Banking and Securities
as of 2026-09-16
Bank rate-cap exemption (state-specific rule) Pennsylvania state-chartered banks are not subject to state interest-rate caps (Banking Code Sections 303/506 supersede the LIPL 6% cap).
Source says: "Pennsylvania law does not impose any restrictions on the interest rate that Pennsylvania state-chartered banks may charge to customers." (DoBS interpretive letter, May 11, 2023).		 Pennsylvania Department of Banking and Securities
as of 2026-09-16

Places we cover in Pennsylvania

The Census Bureau counts 1,013 places in Pennsylvania, 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 Pennsylvania?
The answer turns on the product and on which statute applies to it. This page's table sets out Pennsylvania's usury cap and licensing rules, and each row carries its publisher and a link to the primary source.
What is Pennsylvania'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 Pennsylvania's current position.
How do I know a lender is licensed in Pennsylvania?
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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