How installment loans work
An installment loan is repaid in equal payments over months, not in one payment on your next payday; the examples below stay within District of Columbia limits.
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)
- 24%
- Repayment
- 12 monthly payments
- Payment
- $94.56
- Finance charge
- $134.72
- Total of payments
- $1,134.72
Example: a $1,000 installment loan at 24% APR repaid in 12 monthly payments of $94.56 costs $1,134.72 in total, including a finance charge of $134.72. 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)
- 24%
- Repayment
- 12 monthly payments
- Payment
- $283.68
- Finance charge
- $404.16
- Total of payments
- $3,404.16
Example: a $3,000 installment loan at 24% APR repaid in 12 monthly payments of $283.68 costs $3,404.16 in total, including a finance charge of $404.16. 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)
- 24%
- Repayment
- 12 monthly payments
- Payment
- $47.28
- Finance charge
- $67.36
- Total of payments
- $567.36
Example: a $500 installment loan at 24% APR repaid in 12 monthly payments of $47.28 costs $567.36 in total, including a finance charge of $67.36. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
What District of Columbia law allows
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Installment and personal loans[1][2][3] | Allowed | 24% APR | Not set by statute | Not set by statute | Money Lender license | D.C. Code Section 28-3301; Section 26-901 and Section 26-905 |
| Verified against the statute and regulator on September 23, 2026. Laws change; confirm with the regulator before you borrow. | ||||||
Bars place each APR cap on a 0 to 400% scale; the pin marks the cap. A striped bar means the statute sets no numeric cap.
The rules in full
Installment and personal loans
- Rate cap
- D.C. Code Section 28-3301 caps interest in a written instrument at 24% per annum, and Section 26-905 bars licensed money lenders from exceeding that lawful rate, with the cap covering all fees and charges. This 24% ceiling applies to consumer installment loans.
- License
- Money Lender license issued by the DC Department of Insurance, Securities and Banking (DISB).
Full detail for every loan type: District of Columbia lending laws.
Help in the District of Columbia
Rent and jobs in the District of Columbia
Typical rent and the jobless rate, to weigh before a loan payment.
Other options in the District of Columbia
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), capped at 28% APR under NCUA rules (12 CFR 701.21).
- Nonprofit credit counseling through the National Foundation for Credit Counseling.
- A payment plan from the company you owe, if you ask before you miss a payment.
- 211 for help with rent, utilities and food: call 211 or visit 211.org.
More cheaper options in the District of Columbia.
Other loan types allowed in the District of Columbia
Installment loans in nearby states
- MarylandAllowed 33% APR (top tier)
- DelawareAllowedNo rate limit in state law No rate limit
- VirginiaAllowed 36% APR
- PennsylvaniaAllowed 24% APR
- New JerseyAllowed 30% APR
Sources
- code.dccouncil.gov/us/dc/council/code/sections/47-2884.09. Retrieved September 23, 2026.
- code.dccouncil.gov. D.C. Code Section 28-3301. Retrieved September 23, 2026.
- disb.dc.gov. DC Department of Insurance, Securities and Banking (DISB). Retrieved September 23, 2026.
- National Low Income Housing Coalition. Out of Reach 2026: District of Columbia. Retrieved September 23, 2026.
- U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.
Important disclosures
APRs vary by lender and state in the District of Columbia. Each lender sets its own rates and terms and must show you the APR before you sign.
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- Questions about a lender licensed in the District of Columbia? Contact the DC Department of Insurance, Securities and Banking (DISB) or file a state complaint.
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