About 12 million Americans take payday loans each year. This shows that the scheme has gained much popularity in recent years. The major reason for this is the quick, same-day approval. Still, it’s not legal in many states. Keep reading to know Same-Day Online Payday Loans: State-by-State Approval Rules.
Also, the regulation for approval widely varies from state to state. It’s important to be aware of them. When you know the laws, you can find a trusted lender with ease.
States Where You Cannot Take A Payday Loan
As of 2025, some of the states have yet to legalize payday loans. There are many reasons behind it. The high interest rates, short payterm, and no credit checks are the major issues. Also, most banks do not issue a payday loan.
In states where payday loans are prohibited, you will find no physical stores. However, many out-of-state online lenders provide loans in such places. There are risks with online payday loans with no credit checks. Here is a list of states where payday loans are still not legal:
- Arizona
- Arkansas
- District of Columbia
- Georgia
- Hawaii
- New Mexico
- North Carolina
Payday Loan Approval Regulations for Every State
Apart from the above-mentioned states, others have already legalized payday loans. Yet, there are various regulations to save borrowers from being victimized. When borrowing money, you should make sure the lender is not violating any of these rules. Check the below table:
| State | Maximum amount | Maximum loan term | Financial charges |
| Alabama | $500 | 10-31 days | Must not exceed 17.5% of the amount advanced. |
| Alaska | $500 | 14 days | Not more than $15 for each $100 |
| California | $300 | Up to 31 days | Up to 15% of the face amount |
| Colorado | $500 | n/a | Must not exceed 36% APR |
| Delaware | $1,000 | Less than 60 days | n/a |
| Florida | $1,000 | $500 | Follows a complex set of regulations |
| Guam | n/a | n/a | n/a |
| Idaho | $1,000 | 25% of the gross salary of the borrower | |
| Illinois | $1,000 | 13 – 45 days | Follows a complex set of regulations |
| Iowa | $500 | Up to 31 days | Not more than $15 for each $100 |
| Kansas | $500 | Up to 30 days | Up to 15% of the face amount |
| Kentucky | $500 | Shall not exceed 60 days | Not more than $15 for each $100 |
| Louisiana | $350 | Shall not exceed 30 days | Up to 16.5% of the face amount, but not more than $45 |
| Maine | n/a | n/a | Varies depending on various situations and conditions |
| Michigan | $600 | Up to 31 days | Varies depending on various situations and conditions |
| Minnesota | $350 | Shall not exceed 30 days | Varies depending on various situations and conditions |
| Mississippi | $500 | Shall not exceed 30 days | Follows a complex set of regulations |
| Missouri | $500 | Up to 31 days | Less than 75% of the borrowed money |
| Montana | $350 | Up to 31 days | Must not exceed 36% APR |
| Nebraska | $500 | Shall not exceed 34 days | Follows a complex set of regulations |
| Nevada | Not more than 25% of the gross salary of the borrower | Shall not exceed 35 days | |
| New Hampshire | $500 | Shall not exceed 30 days | Must not exceed 36% APR |
| North Dakota | $500 | Shall not exceed 60 days | Follows a complex set of regulations |
| Ohio | $1,000 | The minimum duration can be 91 days, while the maximum duration can be up to a year. | Must not exceed 28% APR along with monthly maintenance fees |
| Oklahoma | $500 | Not less than 12 days and not more than 45 days | Not more than $15 for each $100 for up to $300. For a higher amount, it should be $10 for each $100. |
| Oregon | $50,000 | Shall not exceed 60 days | Follows a complex set of regulations |
| Puerto Rico | n/a | n/a | n/a |
| Rhode Island | $500 | Not less than 13 days | Follows a complex set of regulations |
| South Carolina | $550 | n/a | Must not exceed 36% APR along with monthly maintenance fees |
| Tennessee | $550 | Up to 31 days | Varies depending on various situations and conditions |
| Texas | $300 | The duration can be between six months and a year based on the amount of the money taken as the debt | Varies depending on various situations and conditions |
| Virginia | $2,500 | The duration can be between six months and a year based on the amount of the money taken as the debt | Must not exceed 36% APR along with monthly maintenance fees. There can be changes of the charge including other fees based on various conditions. |
| Virgin Islands | $700 or 30% of the gross salary of the borrower | 45 days, including holidays and festivals. However, the duration can be adjusted based on the money and the agreement between the creditor and the borrower. | Varies depending on various situations and conditions |
| Wisconsin | n/a | Up to 90 days | Varies depending on various situations and conditions |
| Wyoming | n/a | One calendar month | A licensed provider cannot charge an amount greater of $30 or 20% per month on the principal balance of the post-dated check or similar agreement |
Tips for Safe Payday Loan
Payday loans can be predatory when you don’t consider all the factors. You can get trapped in a debt cycle or lose an awful lot of money. To stay safe, you can follow these tips:
- Only borrow what you can fully repay with your next paycheck.
- Avoid taking a new loan to pay off the last one.
- Check the lender’s license before giving any personal information.
- Read the full loan agreement before signing anything at all.
- Watch for hidden fees or unclear repayment terms.
- Ask questions if something in the contract looks confusing or vague.
- Pay attention to state laws. Some limit rates or ban payday loans.
Why Do the Approval Laws Vary from State to State for Payday Loans?
Payday loan rules are set by each state, not the federal government.
That’s why approval laws can look very different from place to place. The regulations vary because of:
- States choose how much interest a lender is allowed to charge.
- Some states ban payday loans completely to protect their residents.
- Others allow loans but limit the amount a person can borrow.
- Rules help stop lenders from taking unfair advantage of borrowers.
- Each state decides how often someone can take out a loan.
- State laws say what happens if a borrower cannot repay on time.
- Lenders must follow local rules or face serious legal penalties.
Conclusion
Same-day online payday loans follow different rules in each state. Always check your state’s laws before applying. Knowing the limits, fees, and legal protections can help you avoid trouble and borrow smarter. Stay informed to keep your finances safe.
