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Home > Resources > Navigating Title Loan Laws by State in the US

Navigating Title Loan Laws by State in the US

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You may be surprised that the Federal government isn’t in charge of setting laws and regulations regarding title loans. They only require that lenders pre-disclose to borrowers certain terms, limitations, and provisions such as the APR, duration of the loan, and the total costs of a credit agreement or loan. 

The rest is up to the states. Each state has different, comprehensive title loan laws, and they change often. While some states have set guidelines that the lender and borrower must meet, others are only able to provide them with strict restrictions or by using title loan loopholes (gaps or exceptions) in the law. Other states outlaw them altogether. 

Understanding the title loan laws in your state is important, but it can be overwhelming. See our chart below for an overview of each state’s most recent requirements and legal status.

Title Loan Regulations & Disclosures For 2023

Disclaimer: The following table is provided as a reference only. Title loan laws change often and the information in the table may not be fully up-to-date. Be sure to consult with a financial or legal advisor before taking action, as we are not liable for any decisions made based on the data below. 

  StateLegal StatusLoan Amount (Min-Max)Maximum Monthly Interest Rate
AlabamaLegal$100 – $50,00025%
ArizonaLegal$100 – $50,00017%
CaliforniaLegal$2,500 – no maximum36%
DelawareLegal$100 – $50,000Unlimited
GeorgiaLegal$100 – $50,00025%
Hawaii Illegal
IdahoLegal$100 – $50,000N/A
IllinoisLegal$100 – $4,000N/A
LouisianaLegal$350 – $50,00036%
MinnesotaLegal$100 – $35036%
MississippiLegal$100 – $2,50025%
MissouriLegal$100 – $5,00025%
MontanaLegalUp to $5,00015%
NevadaLegalUp to fair market value
New HampshireLegalUp to $10,000
New JerseyIllegal
New MexicoLegal$100 – $250036%
New YorkIllegal
North CarolinaIllegal
North DakotaIllegal
OregonLegal$100 – $50,00036%
Rhode IslandLegal$100 – $50025%
South CarolinaLegal$2,500 – $50,000N/A
South DakotaLegal$100 – $5,00025%
TennesseeLegal$100 – $2,50025%
TexasLegal$100 – $50,00010%
UtahLegalUp to fair market value
VirginiaLegalUp to 50% fair market value22%
West VirginiaIllegal
WisconsinLegal$100 – $25,000N/A

*Green: legal/legal with restrictions or loopholes
*Red: Illegal

What Are Title Loans?

An auto title loan is a loan against a car’s equity. Title loan lenders typically require you to own a car lien-free to get a title loan.

When you borrow money against the car’s title, you give up the title in exchange for the funds. However, the good news is that you keep the car and can drive it normally. You make payments to the title loan lender, and when you repay the loan, you receive the title back.

How Title Loans Are Regulated

Title loan regulations occur at the state level. Each state has different requirements for car title loans, but states typically fall into one of the following categories:


In these states, title loans aren’t allowed under any circumstances

This means that title loans are allowed, however they may come with restrictions including a maximum APR, loan amount, or term length.


  • The states listed below fall into this category. This means that the state either bans title loans or has strict requirements, but a lender is able to structure the loan outside of the typical title loan definition or requirements.
    • Kansas –  Lenders are able to offer title loans structured as “open-ended lines of credit.”
    • California and South Carolina – Lenders can get around the states maximum APR by starting loan amounts above a certain amount.
    • Louisiana – Lenders can provide loans over $350 with terms of at least 2 months to avoid restrictions set by their state.

Title Loan Laws Across States

Title loan laws vary widely across state lines; however, they can be lumped into two primary categories – states that ban auto title loans altogether and states where they are legal. Let’s take a closer look.

Illegal Title Loan States

The following states Do NOT allow title loans under any circumstances. This means that If you live in one of the states below, you will need to investigate different financing options.

If you’re in need of quick financing, complete an application on our website to see if you qualify for one of our other loan products. 

  • Alaska
  • Arkansas
  • Colorado
  • Connecticut
  • Hawaii
  • Indiana
  • Iowa
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Nebraska
  • New Jersey
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Pennsylvania
  • Vermont
  • Washington
  • West Virginia
  • Wyoming

The following states DO allow title loans. It is important to understand that each state has different legal requirements set by the state legislature (provided below). These include maximum and minimum loan amounts, terms, and interest rates. 

Check Out Your State Law Below:

Lender Tip- Be Aware of Repossession Risk

If you receive a title loan, keep in mind the risk of repossession. If you are unable to repay your loan, the lender has the right to repossess your vehicle and sell it to satisfy the loan. These laws also vary by state.

In some states, for example, the title lender must wait ten days before repossessing your car after providing 20 days to make up a missed payment. In others, the laws require title lenders to allow borrowers to redeem themselves and pay the loan balance before selling the car. Check out your state below to see the specifics on your state.

Reporting Fraud/Deception

Consumers should always know their rights and be aware of any unethical or misleading practices such as aggressive sales tactics and deception from title lenders. If you suspect fraudulent or deceptive practices, contact your state attorney general or report the actions to the Federal Trade Commission.

Car Title Loan Military Protections

If you’re in the military, you have certain military protections, including a maximum title loan interest rate you can be charged on title loans, credit cards, or many other consumer loans.

The maximum APR for Military servicemembers is 36%. In addition, you have certain protections and assistance at your disposal if you have financial issues, including talking to a Personal Finance Manager or seeking additional support.

Pros and Cons of Getting a Title Loan

With any type of financing, there are pros and cons to consider. At Montana Capital, we want you to understand your options so you make the best decision for you.


  • Typically receive funds within one business day
  • Keep possession of your vehicle during the loan
  • Bad credit friendly; credit is only one determining factor


  • Not available in all states
  • Risk of repossession
  • High annual percentage rate


What Is the Difference Between Payday and Title Loans?

How High Are the Interest Rates on Title Loans?

Why Do Some States Not Allow Title Loans?

Do I Need a Lawyer to Dispute a Title Loan Claim?

Do I Need Proof of Insurance to Qualify for a Title Loan in My State?

What Happens if I Cannot Pay Back My Title Loan in the Expected Period of Time?

Written by Samantha Hawrylack

Written by

Samantha Hawrylack

Samantha Hawrylack writes for our company and is an expert in personal finance. Sam received her Bachelors of Science in Finance and her Masters in Business Administration from West Chester University of Pennsylvania. She began her career in the financial services industry and shifted to an entrepreneurial role where she could directly impact clients. Sam has an impressive background in personal finance and business management.

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