Payday Loan Limits and Protections in California
When surprise bills hit your California budget, payday loans can help you make it to your next paycheck. State law calls this product a “Deferred Deposit Transaction.” You may borrow up to $300 for a term of 31 days or less and pay a one-time fee that is capped at 15 % of the loan amount.
Under California Financial Code §23000-23106, lenders must:
- Be licensed by the Department of Financial Protection and Innovation (DFPI)
- Limit the loan to $300
- Charge no more than $45 on a $300 loan (15 %)
- Prohibit rollovers; you must pay the loan in full before taking another
- Offer one free Extended Payment Plan (EPP) every 12 months if you cannot repay on time
What This Means For You
California law sets clear limits on payday loans. First, you can never borrow more than $300 total. The fee you pay is capped at 15% of whatever you borrow. For example, if you borrow the full $300, the maximum fee would be $45.
Many California lenders handle this by giving you $255 in cash and keeping the $45 fee right away. This is why you often see "$255 loans" advertised, even though the total loan amount is technically $300. When your loan is due (typically on your next payday), you must repay the full $300, not just the $255 you received in cash.
When you see high APR numbers like 460%, don't be alarmed. This percentage looks large because the loan is very short-term (often just two weeks). Unlike credit cards or other loans, you only pay the one-time fee of $45 on a $300 loan—there's no ongoing interest that keeps growing over time.
Apply Once, Get Multiple Offers with 24CashFast
Applying separately with five or ten lenders is time-consuming, and each site asks you to retype the same data. 24CashFast cuts that hassle. You complete one encrypted form; we do the shopping behind the scenes. Here's how it works:
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Complete our single request form. Enter your contact information, employment details, income, and bank account routing and number. Most users finish in under five minutes.
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We match your request. Our system instantly sends your application to multiple licensed California lenders.
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Compare real offers. If a lender approves you, you see the exact fee, payoff date, and any optional Extended Payment Plan information.
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E-sign the agreement. Review the contract. If you like the offer, sign electronically and keep a copy for your records.
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Receive your cash. In many cases, funds reach your bank account as soon as the next business day. Timing depends on the lender and your bank’s posting schedule.
You are never obligated to accept an offer. If the terms do not fit your budget, simply decline and pay nothing.
California Loan Eligibility
You qualify in minutes if you meet the following:
- At least 18 years old and a California resident
- Regular income (paycheck, benefits, or other verifiable source)
- Active checking account in your name
- Valid phone number and email address
Bad Credit? You Still Have Options
Because payday lenders rely on proof of income, many approve borrowers with credit scores below 600 or with limited credit history. Most of the lenders in the 24CashFast network run only a “soft” inquiry with specialty bureaus such as Teletrack or Clarity. These inquiries do not affect your FICO score.
Making your payment on or before the due date helps you avoid additional fees and may improve your standing with future lenders. If you cannot pay on time, request the state-mandated Extended Payment Plan before the due date to avoid the $15 Non-Sufficient Funds (NSF) fee or other collection costs.
FAQ's
Payday loans are not banned in California, as they are permitted under state law with a maximum loan amount of $300 dollar loan.
Payday loans are available in California, but come with high interest rates and fees. We recommend considering alternatives that may offer lower interest rates, help you build credit, and provide other benefits.
Your loan limit is typically determined by a variety of factors. These can include your income level, your ability to repay the loan, your credit score, and the specific regulations of the state in which you reside. In California, for instance, the maximum loan amount for payday loans is capped at $300.
The maximum loan amount for payday loans in California is $300, allowing borrowers to access up to that amount of funds.
In general, the answer is no. In the United States, debtors' prisons have been abolished and it is not a criminal offense to be unable to pay back a payday loan. However, if a borrower intentionally takes out a loan with no intention of paying it back, this could be considered fraud, which is a criminal offense. Furthermore, while you won't go to jail for not paying back a payday loan, there can be serious consequences. For example, the lender can sue you in civil court for the amount owed, plus any additional interest and fees. If the lender wins the case, they may be able to garnish your wages or put a lien on your property. Therefore, it's important to borrow responsibly and have a plan for repayment when taking out a payday loan.