Installment Loans in California

Amount and term limits

California Financing Law consumer loans are not capped at the site’s $5,000 selector maximum. For this guide, the important split is below $2,500 versus $2,500 and above, because the permitted rate framework changes at that threshold.

Maximum scheduled terms depend on principal. Loans under $500 may run up to 24 months and 15 days; $500–<$1,500 up to 36 months and 15 days; $1,500–<$3,000 up to 48 months and 15 days; and $3,000–<$10,000 up to 60 months and 15 days. Loans of $2,500–<$10,000 generally may not have a scheduled term shorter than 12 months.

Interest, fees and repayment

There is no single fixed APR ceiling across the full $300–$5,000 PLS Cash Advance routing range. California uses one set of rate rules below $2,500 and a Federal-Funds-Rate-linked ceiling beginning at $2,500.

Below $2,500, §§22303–22304 provide statutory rate methods and §22305 limits the administrative fee. For $2,500–<$10,000, §22304.5 caps charges at 36% annual simple interest plus the applicable Federal Funds Rate; administrative-fee treatment changes by amount.

These are consumer installment loans with scheduled repayment. California sets amount-dependent maximum scheduled terms and, for loans of $2,500–<$10,000, a 12-month minimum scheduled term, subject to statutory exceptions such as open-end loans and certain real-estate-secured loans.

Rollovers, refinancing and early payment

Rollover allowed?

Not reduced to a yes/no rule
“Rollover” is primarily payday-loan terminology. California Financing Law installment loans have separate refinancing and fee rules, so this guide does not reduce refinancing to a single rollover yes/no field.

Prepayment penalty allowed?

No
DFPI’s AB 539 guidance states that a licensee may not charge a consumer a prepayment penalty on a consumer loan. Real-estate-secured loans can be governed by other prepayment rules.

California borrower protections

• California Financing Law lenders and brokers generally must be licensed by the DFPI unless an exemption applies.
• The borrower must receive a statement identifying the lender and broker, the loan amount and maturity, how and when it is repayable, security if any, and the agreed rate or APR.
• For loans of $2,500–<$10,000 subject to §22304.5, lenders must report borrower payment performance to at least one nationwide consumer reporting agency.
• For those $2,500–<$10,000 loans, lenders must make an approved credit-education program or seminar available at no cost; borrower participation is not mandatory.
• DFPI guidance states that consumer loans covered by AB 539 may not carry a prepayment penalty.

California loan cost calculator

How to verify a lender in California

Regulator: California Department of Financial Protection and Innovation (DFPI).

California Financing Law finance lender or broker license, unless an exemption applies

Verify a lender license

Official sources

1. California Financial Code §22303 — Rate bands for consumer loans under $2,500 · primary
2. California Financial Code §22304 — Alternative rate method for consumer loans under $2,500 · primary
3. California Financial Code §22304.5 — $2,500–$10,000 consumer-loan rate ceiling · primary
4. California Financial Code §22305 — Administrative fee limits · primary
5. California Financial Code §22334 — Maximum and minimum scheduled repayment terms · primary
6. California Financial Code §22337 — Borrower statement and loan disclosures · primary
7. California DFPI — Requirements for consumer loans of $2,500 to $10,000 · primary
8. Federal Reserve Board — H.15 Selected Interest Rates · primary
9. California DFPI — Consumer & Commercial Loans / California Financing Law · primary
10. California DFPI — Regulated Entities List · primary

Last regulatory verification: 2026-09-06. Laws can change; verify current terms and lender status before borrowing. Read our research methodology.