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Title Loan Interest Rates: What State Law Allows and What You'll Pay

Updated 2026-10-25 · By the Zebra Finance editorial team · How we research

Title loan interest rates and fees are set by each state. Some states cap monthly fees, some cap installment interest, and some ban title loans. Mississippi, for example, allows up to $25 per $100 per month, while Virginia requires installment loans with an interest cap plus a small monthly fee. Your lender shows the exact cost first.

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Who sets the rateYour state's title loan or pawn law
Common pricingA monthly fee per $100, or interest on installments
MississippiUp to $25 per $100 per month; $2,500 max
Tennessee2% monthly interest + fees up to 20% per 30 days
VirginiaInstallments of 6–24 months; $2,500 max
Before you signLender discloses APR, fees and total to repay

How title loan pricing works

Title loans are priced in one of two main ways, depending on your state:

  • Monthly fee or service charge. Common for single-payment title loans and title pawns. The charge is a set amount per $100 borrowed for each 30-day period.
  • Interest on an installment loan. Some states require title loans to be repaid in equal payments over months, with an interest-rate cap and limited fees.

Either way, federal Truth in Lending rules require your lender to disclose the finance charge, APR and total of payments before you sign. That disclosure is the best number to compare between offers. Keep in mind that a monthly charge and an annual rate are measured over different periods, so a "per month" figure and a "per year" figure can't be compared directly. Comparing the dollar finance charge and the total of payments on the same amount and term is the simplest apples-to-apples check. Learn the basics in how title loans work.

Title loan rate caps in selected states (verified)

StateHow it's pricedMaximum loanTerm
MississippiService charge up to 25% of principal per month ($25 per $100), in place of all other charges$2,500 per title30 days; extensions require paying down at least 10% of principal
TennesseeInterest up to 2% per month plus fees of no more than 20% of principal per 30 days$2,50030 days, renewable; from the third renewal, 5% of principal due each time
Georgia (title pawn)Up to 25% of principal per 30 days for the first 90 days, then 12.5%Not set in the pawn law30-day periods, renewable
Alabama (title pawn)Pawnshop charge up to 25% of principal per monthNot setAt least 30 days
VirginiaInstallment loan; simple interest capped at 36% a year plus a maintenance fee of up to $15 a month$2,5006 to 24 months

These figures come from each state's statute as recorded in our state data, checked October 25, 2026. Other states differ; see every state below or on title loan laws by state.

Payment example: $1,000 in three states

Here's what a $1,000 title loan could cost at each state's legal maximum. Lenders can charge less.

StateStructureCost at the legal maximum
MississippiOne 30-day term$250 service charge; $1,250 to repay
TennesseeOne 30-day term$20 interest + up to $200 in fees; up to $1,220 to repay
Virginia12 monthly installmentsAbout $100.46 a month in principal and interest, plus a $15 monthly fee: about $115.46 a month, roughly $1,386 in total

The single-payment examples assume you repay in full at the end of 30 days. Renewing adds another period's charge, so it pays to plan the payoff before you borrow. Try your own numbers below.

Title loan calculator

Possible max loan–
Payment–
Finance charges–

Many title lenders lend 25%–50% of a vehicle's value, and you keep driving your car. Estimate only; your lender shows exact terms.

Title loan payment calculator

To estimate your payment, you need three things: the amount, your state's fee or interest structure, and the term. Our title loan payment calculator handles both single-payment and installment structures. Use it to compare paying in one lump sum with paying over several months where your state allows installments.

Remember that the calculator is an estimate. The lender's written disclosure is the final word on your rate, fees and total.

See if you qualify — it takes about 3 minutes. Start your free request. There is no obligation to accept an offer.

Other charges that can add to the cost

The monthly fee or interest rate isn't the only cost. Depending on your state and contract, watch for:

  • Renewal charges. On 30-day loans, each renewal adds a new period's charge. Mississippi and Tennessee require principal paydowns on extensions, which helps the balance shrink.
  • Lien and filing fees. Georgia's title pawn law allows lien registration at cost.
  • Repossession and storage. Georgia allows a repossession fee starting at $50 and storage of up to $5 a day after a repossession. Virginia caps repossession and sale costs at 5% of the original loan and says borrowers are never liable for storage fees.
  • Late fees, where state law permits them.

Ask the lender to list every possible fee in writing. If you're worried about falling behind, see refinancing a title loan or how to get out of a title loan.

Title loan rules in every state

The table below is generated from our state-law data and shows where title loans are legal, limited or not allowed, with links to each state's details.

StateTitle loansMax loanRate capRepossession rules
AlabamaLegal—Pawnshop charge of up to 25% of the principal per month.You do not have to redeem or make payments.
AlaskaLimited———
ArizonaLegal—Maximum monthly finance rate by original principal: 17% for $500 or less; 15% for over $500 to $2,500; 13% for over $2,500 to $5,000; 10%…—
ArkansasNot available—17% per year.—
CaliforniaLegal—Under $2,500: tiered statutory caps of roughly 12% to 30% a year, depending on balance.If you miss payments or default, the lender can repossess the car.
ColoradoLimited———
ConnecticutNot available—A security interest in a motor vehicle is allowed only for a closed-end loan made solely to buy or refinance that vehicle.—
DelawareLegalSubchapter V sets no maximum loan amount.No statutory rate cap.Before repossessing or suing, the lender must offer a workout agreement that reduces the debt by at least 10% a month, and give you at…
District of ColumbiaNot available—24% per year.—
FloridaLegal—30% a year on the first $2,000 of principal, 24% a year on the part between $2,000 and $3,000, and 18% a year on the part above $3,000.At least 10 days before selling a repossessed vehicle, the lender must tell you the date, time and place of the sale and give you a written…
GeorgiaLegal—Interest plus pawnshop charges may not exceed 25% of the principal per 30-day period for the first 90 days (minimum charge up to $10), then…On default the pawnbroker may take the vehicle without going to court if it can do so without a breach of the peace, or by court action.
Hawaii———
IdahoLegalThe loan, together with other title loans from the same lender on that vehicle, may not exceed the vehicle's retail value under…No cap.Before acting on a default, the lender must mail a 'Notice to Cure Default' giving you 10 days to cure.
IllinoisLimited—36% APR, all-in (Military Lending Act method).—
Indiana———
IowaLimited—21% a year on the unpaid amount financed, except as authorized under chapter 536 or 536A.—
KansasLegal—No rate cap: for open-end consumer credit a lender may charge any rate agreed to, but prepaid finance charges are limited to the lesser of…If you default, the lender may repossess the vehicle and sell it to repay the debt.
KentuckyLimitedUp to $15,000, excluding charges (consumer loan act limit).Same tiered limits as other consumer loans: 3% per month on loans up to $5,000; 2.42% per month for $5,000-$10,000; 2.25% per month above…—
LouisianaLegal—The general consumer-loan finance charge limits apply: 36% a year on the first $1,400 of principal, 27% on $1,400-$4,000, 24% on…—
MaineNot available———
MarylandNot available—Same caps as other consumer loans: Interest on loans of $2,000 or less is capped at 2.75% a month (33% a year) on the first $1,000 and 2% a…For loans made under the higher § 12-306(a)(6) rates and secured by personal property, the lender must follow Commercial Law § 12-115 on…
MassachusettsNot available—Licensed small loan companies may charge no more than 23% a year on the unpaid balance (actuarial method), plus a $20 administrative fee…—
MichiganNot available—Licensed (regulated) lenders may charge up to 25% a year.—
MinnesotaLegalThe title-loan statute covers loans of $1,000 or less.Total interest and fees may not exceed what a pawnbroker may charge: 3% per month of the amount advanced plus a reasonable storage/service…A vehicle covered by a title pawn may not be sold until 90 days after the vehicle is recovered.
MississippiLegalA title pledge on any single vehicle title may not exceed $2,500.The service charge may not exceed 25% of the principal per month (about 300% a year), in place of all interest and other charges.If you don't redeem by the maturity date, the lender may repossess without going to court if it can do so without a breach of the peace.
MissouriLegalA title lender may not make a loan over $5,000.No fixed rate cap: title lenders charge simple interest at rates agreed by the parties, plus only the fees allowed by RSMo 408.140.After a payment default, the lender may not repossess or accelerate the loan until 20 days after it sends you a notice of your right to…
MontanaNot available—Vehicle-secured personal loans fall under the Montana Consumer Loan Act, where interest may not exceed 36% a year.—
NebraskaNot available—Installment loans, secured or unsecured, are capped at 24% a year on the first $1,000 of unpaid principal and 21% on the rest.—
NevadaLegalA title loan may not exceed the fair market value of the vehicle.No APR cap on the original loan.No repossession before default.
New HampshireLegal—Interest may not exceed 25% per month.—
New JerseyNot available—Criminal usury limit of 30% a year for individual borrowers.—
New MexicoNot available—36% APR all-in.—
New YorkNot available—16% civil usury; 25% criminal usury.—
North CarolinaNot available—Same as Consumer Finance Act installment loans: 33% / 24% / 18% tiers.—
North DakotaLimited—A licensed lender may not charge finance charges above 36% a year, including fees charged at origination.—
OhioLimited—No title-loan-specific rate.—
OklahomaLimited—Supervised loans: the greater of (a) 32% plus the federal funds rate on the first $7,000 of principal, 23% plus the federal funds rate on…—
OregonLegal—36% a year, plus a one-time origination fee of $10 per $100 or $30, whichever is less.The contract may not let interest keep running after the vehicle is repossessed.
PennsylvaniaNot available—6% a year for unlicensed lenders on loans of $50,000 or less.—
Rhode IslandLimited—For loans of $5,000 or less: 3% a month up to $300, 2.5% a month on $300-$800, 2% a month on $800-$5,000.—
South CarolinaLegalA short-term vehicle secured loan may not exceed the car's fair market retail value under common industry appraisal guides.No fixed cap for supervised loans with a cash advance over $600: the lender may charge any rate it files and posts with the Department of…On a short-term vehicle secured loan, unless you committed fraud, the lender's only remedy on default is to repossess and sell the car.
South DakotaNot available—36% a year, including all fees.—
TennesseeLegalNo more than $2,500, counting other outstanding title pledge loans with the same lender on the same title.Interest of up to 2% per month, plus fees of no more than one-fifth (20%) of the original principal per 30-day period.On default, the lender may repossess the vehicle without court process if it can do so without a breach of the peace.
TexasLegal via CSO/CAB—No state cap on the CAB's fee; fees are as agreed and must be disclosed.The CAB must warn you in writing that on default you may have to surrender the vehicle.
UtahLegalA title loan may not exceed the fair market value of the vehicle, and a lender may not make more than one title loan on the same…No cap.Except in a case of borrower fraud, if you default the lender's only remedy is to repossess and sell the vehicle.
VermontNot available—18% a year (current or previous model-year vehicle) or 20% a year (older vehicle).—
VirginiaLegalNo more than $2,500, and a lender may not have you owe it more than $2,500 in principal at any time.Simple interest of no more than 36% a year, plus a monthly maintenance fee of no more than 8% of the original loan amount or $15, whichever…Except for fraud or voluntary surrender, the lender may not take the vehicle until you are in default.
WashingtonNot available—Any vehicle-secured consumer loan from a Consumer Loan Act licensee is limited to 25% a year simple interest (plus the allowed origination…—
West VirginiaNot available—31% a year on loans of $3,500 or less (not secured by real estate); 27% on loans over $3,500 up to $15,000; 18% on loans over $15,000.—
WisconsinLegal$25,000, and no more than 50% of the vehicle's retail value.No limit on interest before the maturity date.Except for voluntary surrender, the lender must send you notice at least 20 days before taking the vehicle, stating its intent and the…
WyomingLimited—Same as other consumer loans: 36% a year on the part of the unpaid principal up to $1,000 and 21% a year on the part above $1,000…—

Verified against state statutes and regulators; click a state for citations. Last verified 2026-10-25.

In Texas, title loans are arranged through licensed credit access businesses, and the state doesn't cap the credit access business fee. In states that don't allow title loans, lenders in our network may offer personal installment loans instead.

How to get a lower total cost

  • Borrow only what you need. Fees are charged per $100, so a smaller loan costs less.
  • Choose the shortest term you can comfortably repay. Each extra 30-day period adds charges.
  • Ask about early payoff. Paying early can cut the cost on many loans.
  • Compare installment options. Where allowed, spreading payments can make each one easier to manage.
  • Compare offers. Different lenders may price below the legal maximum.
  • Look at personal loans too. See title loan vs. personal loan.

Get title loan offers with one form

Zebra Finance is a free loan-matching service, not a lender. One short form, about 3 minutes, reaches lenders in our network that serve your state. Many decide within minutes, and approved funds can arrive as soon as the next business day. Every offer shows the rate, fees and total to repay before you accept, and there's no obligation.

See if you qualify — it takes about 3 minutes. Start your free request. There is no obligation to accept an offer.

Frequently asked questions

What is the interest rate on a title loan?

It depends on your state. Many states price title loans as a monthly charge per $100 borrowed, such as up to $25 per $100 per month in Mississippi. Others, like Virginia, require installment loans with a capped interest rate plus a small monthly fee. Your lender's disclosure shows the exact APR and total before you sign.

How do I calculate a title loan payment?

For a single-payment loan, multiply the amount by your state's monthly charge and add it to the principal: $1,000 at $25 per $100 means $1,250 due in 30 days. For an installment loan, use an amortization calculator with the rate, term and any monthly fees. Our title loan calculator does both.

Are title loan interest rates capped?

In many states, yes. Some cap the monthly fee, some cap the interest rate on installment title loans, and some limit the loan size. A few states have no specific title loan law, and others ban title loans entirely. Check your state's page for the verified rules.

Do title loans have lower rates than payday loans?

It varies by state and lender. Title loans are secured by your vehicle and often allow larger amounts and longer terms. Compare the total to repay on each offer rather than the product name, and use our calculators to see the dollar cost.

Can I pay off a title loan early to save on interest?

Many lenders allow early payoff, and on installment loans paying early usually cuts the interest you owe. On single-payment loans, the charge for the period may already be set. Ask the lender how early payoff works, and request a written payoff amount, before you sign.

Sources

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