Representative example
- Amount borrowed
- $500
- Annual percentage rate (APR)
- 29.99%
- Repayment
- 6 monthly payments
- Payment
- $90.77
- Finance charge
- $44.62
- Total of payments
- $544.62
Example: a $500 installment loan at 29.99% APR repaid in 6 monthly payments of $90.77 costs $544.62 in total, including a finance charge of $44.62. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Loan types the law allows at $500
Counts of states, from our state law dataset. A state can allow a loan type and still cap how much you can borrow.
| Loan type | States that allow it | Capped below $500 | No amount limit in state law |
|---|---|---|---|
| Installment and personal loans | 51 | 0 | 27 |
| Title loans | 28 | 0 | 21 |
| Payday loans | 35 | 2 | 9 |
States that cap payday loans below $500
- California $300
- Minnesota $350
Where the rate cap depends on the loan size
In these states the law sets a different rate cap by loan size. This is the cap the statute sets for $500, not a quote.
| State | Loan type | Rate cap in state law for $500 |
|---|---|---|
| Alabama | Installment and personal loans | 36% APR up to $200; 24% APR above $200 |
| Alaska | Installment and personal loans | 36% APR up to $850 |
| Arizona | Installment and personal loans | 36% APR up to $3,000 |
| Arizona | Title loans | 204% APR |
| Connecticut | Installment and personal loans | 36% APR |
| Florida | Installment and personal loans | 36% APR up to $10,000 |
| Indiana | Installment and personal loans | 36% APR up to $2,000, or 25% APR if greater |
| Indiana | Title loans | 36% APR up to $2,000, or 25% APR if greater |
| Iowa | Installment and personal loans | 36% APR up to $3,000 |
| Kansas | Installment and personal loans | 36% APR up to $860 |
| Kentucky | Installment and personal loans | 36% APR up to $5,000 |
| Louisiana | Installment and personal loans | 36% APR up to $1,400 |
| Maine | Installment and personal loans | 30% APR up to $2,000 |
| Maine | Payday loans | 30% APR up to $2,000 |
| Maryland | Installment and personal loans | 33% APR up to $1,000 |
| Minnesota | Installment and personal loans | 33% APR up to $1,425, or 21.75% APR if greater |
| Nebraska | Installment and personal loans | 24% APR up to $1,000 |
| North Carolina | Installment and personal loans | 33% APR up to $4,000 |
| Rhode Island | Installment and personal loans | 36% APR up to $300; 30% APR from $300 to $800 |
| Texas | Installment and personal loans | 30% APR up to $500 |
| Vermont | Installment and personal loans | 24% APR up to $1,000, or 18% APR if greater |
| West Virginia | Installment and personal loans | 31% APR |
| Wyoming | Installment and personal loans | 36% APR up to $1,000 |
| Wyoming | Title loans | 36% APR up to $1,000 |
A credit union payday alternative loan (PAL) can cover $500: NCUA rules allow PALs of up to $2,000 (12 CFR 701.21).
What published data says about $500
- In the Federal Reserve's 2025 survey of household finances, 63% of adults said they would cover an unexpected $400 expense with cash, savings or a credit card paid off at the next statement.
- In that survey, 12% of adults said they could not pay a $400 emergency expense by any means.
- The same survey found that 70% of adults could pay an emergency expense of $500 or more using only their savings.
- In a 2013 study of storefront payday loans, the CFPB found a median loan of $350 and noted that $500 was a common state maximum.
Ways to borrow $500
$500 is a little more than the $400 emergency the Federal Reserve asks about, and more than the CFPB's median storefront payday loan of $350. In 2 of the 35 states that allow payday loans, the law caps them below $500. Installment loans are allowed in 51 states, and 27 of them set no amount limit in state law. A federal credit union PAL can also cover $500, since PALs go up to $2,000, though you usually need to be a member. A payment plan from the creditor, local emergency assistance and nonprofit credit counseling are other ways to handle a gap this size.
From our state law dataset; each state page cites its statutes. How we research state rules.
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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