Car title loan laws vary widely across the U.S., with some states allowing them, others banning them, and many placing strict limits on loan amounts, interest rates, and terms. While federal law does not directly regulate title loans, oversight from agencies like the Consumer Financial Protection Bureau (CFPB) influences how lenders operate nationwide.
This guide breaks down title loan laws by state, helping you understand where these loans are legal, restricted, or prohibited, and what rules apply in your area.
Title Loan Regulations & Disclosures For 2025
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.
| State | Legal Status | Loan Amount (Min-Max) | Maximum Monthly Interest Rate |
| Alabama | Legal | $100 – $50,000 | 25% |
| Alaska | Illegal | – | – |
| Arizona | Legal | $100 – $50,000 | 17% |
| Arkansas | Illegal | – | – |
| California | Legal | $2,500 – no maximum | 36% |
| Colorado | Illegal | – | – |
| Connecticut | Illegal | – | – |
| Delaware | Legal | $100 – $50,000 | Unlimited |
| Florida | Legal | $500+ | 30% |
| Georgia | Legal | $100 – $50,000 | 25% |
| Hawaii | Illegal | – | – |
| Idaho | Legal | $100 – $50,000 | N/A |
| Illinois | Legal | $100 – $4,000 | N/A |
| Indiana | Illegal | – | – |
| Iowa | Illegal | – | – |
| Kansas | Legal | – | – |
| Kentucky | Legal | – | – |
| Louisiana | Legal | $350 – $50,000 | 36% |
| Maine | Illegal | – | – |
| Maryland | Illegal | – | – |
| Massachusetts | Illegal | – | – |
| Michigan | Illegal | – | – |
| Minnesota | Legal | $100 – $350 | 36% |
| Mississippi | Legal | $100 – $2,500 | 25% |
| Missouri | Legal | $100 – $5,000 | 25% |
| Montana | Legal | Up to $5,000 | 15% |
| Nebraska | Illegal | – | – |
| Nevada | Legal | Up to fair market value | – |
| New Hampshire | Legal | Up to $10,000 | – |
| New Jersey | Illegal | – | – |
| New Mexico | Legal | $100 – $2500 | 36% |
| New York | Illegal | – | – |
| North Carolina | Illegal | – | – |
| North Dakota | Illegal | – | – |
| Ohio | Illegal | – | – |
| Oklahoma | Illegal | – | – |
| Oregon | Legal | $100 – $50,000 | 36% |
| Pennsylvania | Illegal | – | – |
| Rhode Island | Legal | $100 – $500 | 25% |
| South Carolina | Legal | $2,500 – $50,000 | N/A |
| South Dakota | Legal | $100 – $5,000 | 25% |
| Tennessee | Legal | $100 – $2,500 | 25% |
| Texas | Legal | $100 – $50,000 | 10% |
| Utah | Legal | Up to fair market value | – |
| Vermont | Illegal | – | – |
| Virginia | Legal | Up to 50% fair market value | 22% |
| Washington | Illegal | – | – |
| West Virginia | Illegal | – | – |
| Wisconsin | Legal | $100 – $25,000 | N/A |
| Wyoming | Illegal | – | – |
*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:
Banned
In these states, title loans aren’t allowed under any circumstances
Legal
This means that title loans are allowed, however they may come with restrictions including a maximum APR, loan amount, or term length.
Loopholes
- 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
Car title loans are not permitted in Alaska, meaning title lenders cannot legally offer secured loans against a vehicle’s title. If you’re looking for alternative financing, you’ll need to consider other options outside of vehicle-title collateral.
Arkansas
Title loan laws prohibit lenders from issuing car title loans secured by vehicle equity in Arkansas. Borrowers needing fast funds must explore unsecured personal loans or credit lines instead.
Colorado
Title loans are banned in Colorado, and any offer that appears to use vehicle title as collateral may be void. Check carefully for state compliance before proceeding.
Connecticut
Connecticut’s law prohibits auto-title loans, so lenders cannot legally use your vehicle title as collateral. Residents must use other financing types that follow Connecticut consumer-credit rules.
Hawaii
Car title loan laws in Hawaii forbid secured loans using the vehicle title. Those seeking quick funding should compare payday, installment or personal loan alternatives.
Indiana
Title loans are illegal in Indiana; lenders cannot create loans where your vehicle title is collateral. Review other short-term financing options that comply with Indiana’s credit laws.
Iowa
Iowa prohibits vehicle-title secured loans under its statutes. If you’re in Iowa and need funds, review credit options permitted under Iowa lending laws.
Maine
Title loan laws in Maine ban loans secured by vehicle titles. Borrowers must rely on other forms of credit if they need immediate cash.
Maryland
Maryland does not allow car title loans using vehicle titles as security. Those living in Maryland should look into other high-interest or alternative loan programs.
Massachusetts
Title loan laws prevent secured loans against a vehicle title in Massachusetts. Consider installment loans or other legal credit products instead.
Michigan
In Michigan, car title loans are not legally allowed; lenders cannot legally use your car’s title as collateral. Check for other regulated loan options.
Nebraska
Nebraska prohibits auto title-secured loans. If you live in Nebraska you must use alternate credit products that comply with state statute.
New Jersey
Vehicle title loans are banned in New Jersey. Borrowers must evaluate other options regulated by New Jersey’s consumer-finance laws.
New York
Title loans using vehicle titles are illegal in New York. Residents should explore personal loans, lines of credit or credit-union alternatives.
North Carolina
Car title loans are not permitted in North Carolina. Credit-seeking borrowers in NC must use other regulated loan products.
North Dakota
Vehicle-title secured loans are forbidden in North Dakota. Review other finance solutions that align with North Dakota regulations.
Ohio
Ohio bans auto title loans secured by a vehicle title. If you’re in Ohio and need financing, check other state-approved credit avenues.
Oklahoma
Car title loans are not legally available in Oklahoma under current law. Seek alternative loan types that follow Oklahoma’s statutes.
Pennsylvania
Title loan laws prohibit secured vehicle-title loans in Pennsylvania. Other short-term financing options must meet Pennsylvania’s regulatory requirements.
Vermont
Vermont does not permit car title loans using your vehicle as collateral. Residents must explore other legal credit products.
Washington
Vehicle title loans are banned in Washington state. Borrowers in WA need to look into alternative, legal financing methods.
West Virginia
Auto title-secured loans are illegal in West Virginia. Consider other regulated options when seeking funds.
Wyoming
Title loans secured by vehicle titles are prohibited in Wyoming. Other forms of credit may be available under Wyoming law.
Legal Title Loan States
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:
Alabama
Title loans are legal in Alabama; borrowers can access car title loans under state law with set limits on amounts and monthly interest. Make sure you understand Alabama’s maximum interest rate and term structure.
Arizona
Arizona allows vehicle-title secured loans and regulates them under its statutes. In Arizona, lenders must follow rules on maximum rates and disclosures for title loans.
*California (loophole state)
Car title loans are technically regulated in California but lenders often use “loan amounts above certain thresholds” to work around caps. If you apply in California, pay attention to how your loan is structured and disclosed.
Delaware
Delaware allows title loans using vehicle titles under state code; though the “Maximum Monthly Interest Rate” may be labeled “Unlimited,” borrowers should review the full cost carefully.
Florida
Florida permits car title loans; the laws set minimum loan amounts and require full disclosure of fees and interest for vehicle-title secured loans.
Georgia
Title loans are legal in Georgia with clearly defined requirements on minimum loan sizes, maximum monthly interest, and terms. Georgia borrowers should review state limits and ensure the lender is licensed.
Idaho
Idaho allows vehicle-title secured loans and requires lenders to operate under state statute. Borrowers must ensure the vehicle and title meet Idaho’s eligibility rules.
Illinois
In Illinois, car title loans are legal under limited maximum amounts and regulated terms. If you’re in Illinois, check the specific cap on loan size and disclosure requirements.
*Kansas (loophole state)
Kansas allows auto title loans through structured products that may not look like standard title loans. Borrowers should confirm how the loan is labeled and structured to ensure compliance.
Kentucky
Title loans are legal in Kentucky with defined maximum amounts and interest restrictions for vehicle-title loans. Borrowers should understand Kentucky’s maximum term and rate conditions.
*Louisiana
Louisiana allows title-secured loans via exceptions for loans over $350 or term minimums. If you’re applying in Louisiana, examine how the lender uses those exceptions in your case.
Minnesota
Minnesota permits car title-secured loans and sets limits on loan amount and APR (up to a certain cap). Review Minn. Stat. § 47.60 and check your lender’s disclosures.
Mississippi
Title loans are allowed in Mississippi for vehicle titles; the state law defines minimum and maximum amounts and sets a monthly interest cap. Borrowers in Mississippi should confirm the rate cap (often ~25 % per month) is respected.
Missouri
In Missouri, car title loans are legal with maximum loan sizes and monthly interest limits. Missouri borrowers must check that the lender is properly licensed and that terms meet Mo. Rev. Stat. § 367.500 et seq.
Montana
Montana permits title loans with defined underwriting limits (e.g., up to $5,000) and interest rate caps in the state code. If you apply in Montana, ensure your loan fits under the state’s maximum amount and rate rules.
Nevada
Nevada allows vehicle-title secured loans and is regulated up to fair market value of the vehicle. Borrowers in Nevada should understand how the vehicle’s value is used and the loan’s term.
New Hampshire
Title loans are legal in New Hampshire up to certain dollar amounts specified by law (e.g., up to $10,000). Be sure to verify your lender’s disclosures under N.H. Rev. Stat. § 399-A.
New Mexico
New Mexico allows title loans with capped loan amounts (e.g., $100–$2,500) and maximum APRs (e.g., 36%). If you live in New Mexico, ensure your loan matches these legal limits.
Oregon
Title loans are legal in Oregon with maximum amounts and interest rates (up to 36%). Oregon borrowers should confirm the term and rate comply with Or. Rev. Stat. Ann. § 725A.
Rhode Island
Rhode Island allows secured title loans (vehicle title) with a capped monthly interest of 25%. Confirm your loan aligns with R.I. Gen. Laws § 19-14.1.
*South Carolina (loophole state)
South Carolina has vehicle-title loan laws but lenders often structure around maximum APRs using certain sized loans. Borrowers in SC must read the fine print.
South Dakota
Title loans are legal in South Dakota with set minimums and interest caps; borrowers should verify that the loan’s rate and term meet South Dakota regulations.
Tennessee
Tennessee allows vehicle-title secured loans under its Title Pledge Act, with maximum loan sizes and interest caps (e.g., 25 % monthly). Review TN Code § 45-15-101 et seq.
Texas
Texas permits title loans up to a capped rate (e.g., 10 % monthly interest) under its finance code. Borrowers in Texas need to ensure the loan stays within Tex. Fin. Code tit. 5 §§ 393.001-393.628.
Utah
Utah allows auto-title secured loans up to fair market value of the vehicle under Utah Code § 7-24-101 et seq. Check the lender’s valuation and term.
Virginia
Title loans are legal in Virginia up to 50% of fair market value of the vehicle with rate limits (e.g., 22% APR). Borrowers must confirm terms meet Va. Code tit. 6.2’d Chap. 22.
Wisconsin
Wisconsin allows vehicle-title secured loans for certain amounts (e.g., $100–$25,000), though review the specific rate disclosures and license requirements under Wis. Stat. § 138.16.
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.
Pros
- Typically receive funds within one business day
- Keep possession of your vehicle during the loan
- Bad credit friendly; credit is only one determining factor
Cons
- Not available in all states
- Risk of repossession
- High annual percentage rate
FAQs
What Is the Difference Between Payday and Title Loans?
The difference between title and payday loans is immense. Payday loans are loans in between pay checks. They are short-term loans, but a much shorter term than title loans. You repay payday loans on your next payday.
If you don’t repay the loan in full, you’ll incur fees and incredible interest rates. Title loans use your car as collateral, have a much longer repayment term, and for a higher loan amount, usually for up to 36 months.
How High Are the Interest Rates on Title Loans?
Title loans have high interest rates, usually around 60% to 175%, so be sure you need the funds before taking out a title loan.
Why Do Some States Not Allow Title Loans?
State and federal governments get involved in title loans because of the high interest rates and potential for predatory lending practices. Working with reputable title lenders like Montana Capital Car Title Loans is important to ensure you aren’t being taken advantage of if title loans are allowed in your state.
Do I Need a Lawyer to Dispute a Title Loan Claim?
If you feel your title lender breached your contract, having attorney representation is best. This will ensure you’re properly represented in court during title loan disputes and won’t be treated unfairly.
Do I Need Proof of Insurance to Qualify for a Title Loan in My State?
Some states require you to qualify for a title loan. However, because most state laws require car insurance to drive, this shouldn’t be a condition that holds you back.
What Happens if I Cannot Pay Back My Title Loan in the Expected Period of Time?
Talk to your loan servicer if you can’t pay your title loan back; they have a mutual interest in working out a solution as opposed to repossession. If you can’t come to a mutual agreement, consider trying to refinance your title loan to get a lower payment. The key is not to default too long or risk losing your car.
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.