CA state reference
California lending rules
California has 482 Census places covered on Personalloaned, with a combined estimated population of 32,542,747. Personal-loan terms in California are set by licensed lenders under state law; the sourced rules below apply to every borrower in the state.
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- Usury cap 7% per annum default; written contracts may set up to 10% per annum for consumer-purpose loans
- Payday lending Permitted under the California Deferred Deposit Transaction Law; max $300 face amount; fee ≤15%; term up to 31 days
- State regulator California Department of Financial Protection and Innovation (DFPI)
Sourced rules
Key rules for borrowers in California
| Rule | Detail | Source |
|---|---|---|
| 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 |
Cities in California
We cover 482 Census places in California. The count and the combined population figures are summed from the US Census Bureau's Vintage 2023 subcounty population estimates (retrieved 2026-09-17).
Common questions