Arizona Payday & Small-Dollar Loan Laws
Payday loans prohibited
Arizona's payday lending statute sunset in 2010 and was not renewed. Small-dollar loans are capped at 36% APR plus a modest fee — effectively prohibiting traditional payday loans. Consumer installment loans remain available.
Arizona Lending Overview
Arizona residents operate within a lending market defined by the 2010 sunset of the state's payday lending statutes. Since the expiration of those laws, traditional payday loans are effectively prohibited. State regulations now impose a 36% annual percentage rate cap on most small-dollar loans, in addition to a modest service fee. This interest rate ceiling prevents the high-cost, short-term lending structures common in other jurisdictions. These protections remain in place to ensure that consumer borrowing costs stay within specific legal limits across the state.
Borrowers seeking immediate funds typically turn to consumer installment loans or personal loans rather than traditional payday products. These alternatives allow for longer repayment periods and must comply with the established rate caps. While emergency financing still exists for those with urgent expenses, the available options are structured as multi-month agreements. Residents often evaluate these installment terms alongside personal loan offers when managing cash flow needs or unexpected bills under Arizona’s regulatory framework.
Maximum loan amount
N/A
Maximum loan term
N/A
Maximum APR / finance charge
36% APR cap (Prop 200 sunset 2010)
Rollover / renewal rule
N/A
Cooling-off period
N/A
Governing statute
A.R.S. § 6-632
Who regulates lenders in Arizona
Arizona Department of Insurance & Financial Institutions
File a complaint with the regulator above if a lender violates state law. You can also file with the CFPB.
Arizona loan options
Other state loan laws
Reviewed by Darnell Pierce, MBA. Last reviewed January 2026. This page is informational, not legal advice — verify current rules with the state regulator before borrowing.