Californians sometimes need fast financial relief from Los Angeles to San Francisco and everywhere in between. Short-term loans can provide a quick solution, whether a medical emergency, car repair, or unexpected expense; California law regulates payday loans, capping the maximum loan amount and requiring lenders to disclose all fees upfront. This ensures transparency, so you know exactly what you're borrowing and its cost.
Short-Term Personal Loans Rates and Fees
California’s short-term loans are designed to bridge financial gaps quickly. While these loans offer rapid access to funds, they carry higher APRs due to their short repayment terms and associated fees. Below, we break down the key cost components:
APRs
California law limits fees for a 31‑day payday loan to $15 per $100 borrowed, resulting in an effective APR of approximately 176%.
Note: If the loan is repaid in a shorter period—for example, 14 days—the effective APR increases dramatically (up to around 460%). The 176% APR applies specifically to a 31‑day loan.
Loan Amounts
California law caps payday loans at $300. Borrowers may only have one outstanding loan at a time.
Terms
Payday loans in California have a fixed term of 31 days. Early repayment is allowed without penalty; however, installment loans (which follow separate regulations) will have different terms.
Fees
All fees are fully disclosed and limited to a maximum of $15 per $100 borrowed for a 31‑day term. Lenders cannot charge any additional fees or offer rollovers—the fee you see is the total cost.
Example Calculation
- Loan Amount: $200
- APR: 460%
- Repayment Term: 15 days (payday loan)
- Total Repayment: Approximately $238, including all allowable fees
Lending Regulations in California
California is known for its strong consumer protection laws in the lending sector. Licensed lenders must adhere to strict disclosure requirements, ensuring every fee is included in the APR calculation.
| Regulation | Details |
|---|---|
| Interest Rate Cap | Maximum fee of $15 per $100 borrowed for a 31‑day loan, yielding an effective APR of ~176% (shorter terms yield a higher APR) |
| Maximum Loan Amount | $300 (legal cap for payday loans) |
| Term Length | 31 days (standard payday loan term; early repayment is allowed) |
| Fees | All fees must be fully disclosed and are included in the APR; no additional charges or rollovers are permitted |
| Oversight | Regulated by the California Department of Financial Protection and Innovation and licensed under the California Deferred Deposit Transaction Law (CDDTL) |
Our Benefits
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How to Apply for a Short-Term Loan in California
Provide Your Information
Fill out our secure, user-friendly online form with your basic details, including the amount you need, your income, and other essential information.We Search Lender Offers
Once your application is submitted, our system immediately matches you with licensed lenders who can meet your financial requirements.Accept and Get Funded
Review the personalized offers tailored to your financial profile. If you choose the best option, electronically sign the agreement and receive your funds—often on the same day.Loan Alternatives in California
If a short-term personal loan isn’t the right fit, consider these alternatives:
Emergency Loans
Emergency loans are immediate cash solutions designed to cover unforeseen expenses quickly.
Personal Loans
Personal loans offer flexible financing options for more significant amounts or extended repayment periods.
Installment Loans
Repay your loan in smaller, manageable monthly payments over several months using installment loans.
Bad Credit Loans
Bad credit loans are available even if you have a less-than-perfect credit history.
FAQ
Are Short-Term Loans Legal in California?
Yes, short-term loans are legal in California. However, they are strictly regulated, and lenders must adhere to specific fee caps and disclosure rules to protect consumers.
What are the requirements for applying for a short-term loan?
Typically, you must be a California resident, at least 18 years old, and able to provide proof of income and identification. Specific requirements may vary by lender.
What Are the Top 5 Cities for Short-Term Loans in California?
Our fast short-term loan services benefit many Californians in major cities like Los Angeles, San Francisco, San Diego, Sacramento, and San Jose.
How Quickly Can I Receive Funds?
Once approved, many lenders can deposit funds on the same day, providing the necessary cash without delay.
What Fees Might Not Be Included in the APR?
All fees must be fully disclosed and included in California's APR. However, additional charges might apply if you extend your loan or roll it over. Always review the lender’s terms carefully.