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 Hawaii 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)
- 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
- $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.
What Hawaii law allows
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Installment and personal loans[1][2][3][4] | Allowed | 36% APR | Up to $1,500 | Up to 1 year | Installment Lender license | HRS ch. 480J, especially s. 480J-4 |
| 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
- Hawaii Installment Loan Act, HRS ch. 480J, s. 480J-4: an installment lender may contract for and receive interest at a rate not exceeding 36% per year on the unpaid principal balance. Loans are precomputed (a month = 1/12 year, a day = 1/365 year).
- Fees
- HRS 480J-4 prohibits loan origination fees and limits the default charge to $30 after a payment is ten days past due.
- License
- Installment Lender license (Hawaii Division of Financial Institutions, DCCA), required under HRS ch. 480J since January 1, 2022; a loan made without the required license is void, with no principal, interest, fees, or charges collectible.
Full detail for every loan type: Hawaii lending laws.
Help in Hawaii
Rent and jobs in Hawaii
Typical rent and the jobless rate, to weigh before a loan payment.
Other options in Hawaii
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 Hawaii.
Other loan types allowed in Hawaii
Sources
- codes.findlaw.com/hi/division-2-business/hi-rev-st-sect-480j-4. Retrieved September 23, 2026.
- cca.hawaii.gov. Hawaii Department of Commerce and Consumer Affairs (DCCA), Division of Financial Institutions (DFI). Retrieved September 23, 2026.
- capitol.hawaii.gov. HRS ch. 480J, especially s. 480J-4. Retrieved September 23, 2026.
- cca.hawaii.gov. Hawaii Department of Commerce and Consumer Affairs (DCCA), Division of Financial Institutions (DFI). Retrieved September 23, 2026.
- National Low Income Housing Coalition. Out of Reach 2026: Hawaii. 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 Hawaii. 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 Hawaii? Contact the Hawaii Department of Commerce and Consumer Affairs (DCCA), Division of Financial Institutions (DFI) or file a state complaint.
- You can submit a complaint about any lender to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.