Washington Payday & Small-Dollar Loan Laws
Payday loans legal (capped)
Washington caps payday loans at $700 or 30% of monthly gross income, whichever is less, and limits borrowers to 8 loans per 12-month period.
Washington Lending Overview
Washington law permits payday lending under specific restrictions designed to limit consumer debt cycles. The state caps these short-term loans at $700 or 30% of a borrower’s gross monthly income, whichever amount is lower. Terms cannot exceed 45 days, and the typical finance charges result in an annual percentage rate of approximately 391%. To prevent continuous borrowing, the Department of Financial Institutions enforces a limit of eight payday loans per resident within any rolling 12-month period.
Borrowers in the state utilize various financial products to manage urgent expenses or larger purchases. While some residents choose payday loans for immediate, small-dollar needs, others seek out personal installment loans or traditional bank financing for longer repayment windows. Given the high costs associated with short-term options, residents often compare these high-interest products against emergency credit or personal loans from credit unions.
Maximum loan amount
$700 or 30% of gross monthly income
Maximum loan term
45 days max
Maximum APR / finance charge
~391% APR
Rollover / renewal rule
No rollovers permitted
Cooling-off period
After 8 loans in 12 months
Governing statute
Wash. Rev. Code § 31.45
Who regulates lenders in Washington
Washington Department of Financial Institutions
File a complaint with the regulator above if a lender violates state law. You can also file with the CFPB.
Washington 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.