Permitted Regulated Verified 2026-09-06 · ver. 0.2.3 How we verify these rules

Installment Loans in Washington

Washington Consumer Loan Act licensees can make secured or unsecured consumer loans under a separate framework from payday lending. The Act caps interest at 25% per annum using simple interest and allows a prepaid origination fee of up to 4% of the first $20,000 of principal and 2% thereafter.

Washington legal category: Consumer Loan · Washington Consumer Loan Act, RCW Chapter 31.04

Washington installment loans at a glance

Legal status
Permitted Regulated
Legal category
Consumer Loan
Maximum amount in this regime
The Consumer Loan Act does not use the $700 payday ceiling. PLS Cash Advance routes the $700–$5,000 portion of its current selector to this guide; larger loans may also fall under the Act depending on the lender and transaction.
Term
RCW 31.04 does not establish one universal term for all unsecured consumer loans in the $700–$5,000 range. The contract and product determine the repayment schedule subject to applicable state and federal law.
Regulator
Washington State Department of Financial Institutions — Division of Consumer Services
Verified
2026-09-06

Choose a loan type by amount

PLS Cash Advance currently presents request amounts from $200 to $5,000. The ranges below are navigation guidance between our state loan guides — not statutory limits, eligibility rules, or a promise of approval.

$200–$700

Payday Loans in Washington

Preferred routing for Washington small/payday loans. State law caps principal at the lesser of $700 or 30% of the borrower’s gross monthly income.

See Payday Loans

$700–$5,000 Current guide

Installment Loans in Washington

Preferred routing for larger multi-payment requests within the current PLS Cash Advance selector. Washington Consumer Loan Act licensees may make secured or unsecured consumer loans under a separate framework.

Amount and term limits

The Consumer Loan Act does not use the $700 payday ceiling. PLS Cash Advance routes the $700–$5,000 portion of its current selector to this guide; larger loans may also fall under the Act depending on the lender and transaction.

RCW 31.04 does not establish one universal term for all unsecured consumer loans in the $700–$5,000 range. The contract and product determine the repayment schedule subject to applicable state and federal law.

Interest, fees and repayment

Within the current PLS Cash Advance $700–$5,000 routing range, the statutory origination-fee ceiling is therefore 4% of principal. The 25% interest figure is a legal ceiling for a CLA licensee, not a typical offer or guaranteed borrower rate.

A Consumer Loan Act licensee may lend at no more than 25% per annum using the simple-interest method. It may charge a nonrefundable prepaid origination fee up to 4% of the first $20,000 of principal and 2% thereafter, plus only other charges authorized by the Act.

The Consumer Loan Act uses the simple-interest method on unpaid principal for nonresidential loans. Contract payment frequency and term can vary; this page does not invent a universal monthly schedule where the statute does not provide one.

Rollovers, refinancing and early payment

Rollover allowed?
Not reduced to a yes/no rule
The Consumer Loan Act does not use payday-style rollover terminology for ordinary consumer loans. Refinancing and new-credit transactions must comply with the Act and the applicable contract.
Prepayment penalty allowed?
Not reduced to a yes/no rule
This dataset does not state a universal prepayment-penalty rule for every Consumer Loan Act loan because the available primary sources used for this rollout do not support one simple rule across all transaction types.

Washington borrower protections

  • A Consumer Loan Act licensee may not exceed 25% per annum using the statutory simple-interest method.
  • The origination fee is capped at 4% of the first $20,000 and 2% above that amount.
  • Washington requires licensing for covered Consumer Loan Act activity unless an exemption applies.
  • Washington DFI warns consumers to verify that an online lender is licensed before providing financial information.

Washington loan cost calculator

Why there is no single statutory calculator: Washington Consumer Loan Act pricing combines a 25% simple-interest ceiling with an origination-fee ceiling and contract-specific terms. A future comparison calculator can model payments, but this release does not label one generic amortization schedule as the statutory maximum cost for every CLA loan.

How to verify a lender in Washington

Regulator: Washington State Department of Financial Institutions — Division of Consumer Services.

Consumer Loan Company license under RCW Chapter 31.04 when required

Verify a lender license

Official sources

  1. RCW 31.04.105 — Consumer Loan Act licensee powers and restrictions · primary
  2. Washington DFI — Consumer Loan Companies Licensing · primary
  3. Washington DFI — Consumer Loan Act FAQs · primary
  4. Washington DFI — Verify a Financial License · primary

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