An installment loan is repaid in equal payments over months, not in one payment on your next payday; the table below shows how long each state lets those payments run.
What installment loans can cost
These examples show how cost adds up. They are illustrative, not a quote. Your lender sets the actual rate and terms.
Representative example
- Amount borrowed
- $1,000
- Annual percentage rate (APR)
- 29.99%
- Repayment
- 12 monthly payments
- Payment
- $97.48
- Finance charge
- $169.76
- Total of payments
- $1,169.76
Example: a $1,000 installment loan at 29.99% APR repaid in 12 monthly payments of $97.48 costs $1,169.76 in total, including a finance charge of $169.76. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Representative example
- Amount borrowed
- $3,000
- Annual percentage rate (APR)
- 29.99%
- Repayment
- 12 monthly payments
- Payment
- $292.45
- Finance charge
- $509.40
- Total of payments
- $3,509.40
Example: a $3,000 installment loan at 29.99% APR repaid in 12 monthly payments of $292.45 costs $3,509.40 in total, including a finance charge of $509.40. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Representative example
- Amount borrowed
- $500
- Annual percentage rate (APR)
- 29.99%
- Repayment
- 12 monthly payments
- Payment
- $48.74
- Finance charge
- $84.88
- Total of payments
- $584.88
Example: a $500 installment loan at 29.99% APR repaid in 12 monthly payments of $48.74 costs $584.88 in total, including a finance charge of $84.88. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Cheaper options to try first
Worth checking whatever your credit: these can cost less than a high-rate loan.
- Credit union payday alternative loans (PALs). Federal credit unions may offer small loans of up to $2,000 with terms of up to 12 months and an APR no higher than 28%, under NCUA rules (12 CFR 701.21). You usually need to be a member.
- Nonprofit credit counseling. A counselor accredited by the National Foundation for Credit Counseling can help you build a budget or a debt management plan.
- Ask your creditor for a payment plan. Utilities, hospitals and many lenders offer hardship or extended payment plans if you ask before you miss a payment.
- Local assistance. Call 211, or visit 211.org, for emergency help with rent, utilities and food.
Loan terms in state law, by state
Allowed in 51 of the 51 states we have checked so far. Pick yours for its limits and local help.
| State | Status | Shortest term in state law | Longest term in state law |
|---|---|---|---|
| Alabama | Allowed | Not set | Not set |
| Alaska | Allowed | Not set | Not set |
| Arizona | Allowed | Not set | Not set |
| Arkansas | Allowed | Not set | Not set |
| California | Allowed | 1 year | 1840 days |
| Colorado | Allowed | Not set | Not set |
| Connecticut | Allowed | Not set | Not set |
| Delaware | AllowedNo rate limit in state law | Not set | Not set |
| District of Columbia | Allowed | Not set | Not set |
| Florida | Allowed | Not set | Not set |
| Georgia | Allowed | Not set | 37 months |
| Hawaii | Allowed | Not set | 1 year |
| Idaho | AllowedNo rate limit in state law | Not set | Not set |
| Illinois | Allowed | Not set | Not set |
| Indiana | Allowed | Not set | Not set |
| Iowa | Allowed | Not set | Not set |
| Kansas | Allowed | Not set | Not set |
| Kentucky | Allowed | Not set | Not set |
| Louisiana | Allowed | Not set | Not set |
| Maine | Allowed | Not set | Not set |
| Maryland | Allowed | Not set | Not set |
| Massachusetts | Allowed | Not set | Not set |
| Michigan | AllowedNo rate limit in state law | Not set | Not set |
| Minnesota | Allowed | Not set | Not set |
| Mississippi | Allowed | Not set | Not set |
| Missouri | AllowedNo rate limit in state law | 4 months | Not set |
| Montana | Allowed | Not set | Not set |
| Nebraska | Allowed | Not set | Not set |
| Nevada | AllowedNo rate limit in state law | Not set | Not set |
| New Hampshire | Allowed | 6 months | Not set |
| New Jersey | Allowed | Not set | Not set |
| New Mexico | Allowed | 4 months | Not set |
| New York | Allowed | Not set | Not set |
| North Carolina | Allowed | Not set | Not set |
| North Dakota | Allowed | Not set | Not set |
| Ohio | Allowed | 6 months | Not set |
| Oklahoma | Allowed | 2 months | 1 year |
| Oregon | Allowed | Not set | Not set |
| Pennsylvania | Allowed | Not set | Not set |
| Rhode Island | Allowed | Not set | 5 years |
| South Carolina | Allowed | Not set | Not set |
| South Dakota | Allowed | Not set | Not set |
| Tennessee | Allowed | Not set | Not set |
| Texas | Allowed | Not set | Not set |
| Utah | AllowedNo rate limit in state law | Not set | Not set |
| Vermont | Allowed | Not set | Not set |
| Virginia | Allowed | 182 days | 3653 days |
| Washington | Allowed | Not set | Not set |
| West Virginia | Allowed | Not set | Not set |
| Wisconsin | AllowedNo rate limit in state law | Not set | Not set |
| Wyoming | Allowed | Not set | Not set |
Guides about installment loans
Important disclosures
APRs vary by lender and state. Each lender sets its own rates and terms and must show you the APR before you sign.
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