CLEARBORROW · PUBLISHED NOVEMBER 12, 2026

Short-term loans in Virginia: the Fairness in Lending Act rules

By Petrov Andriy, founder and editor · AI-assisted desk research

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Virginia still allows short-term loans, but under the Fairness in Lending Act they are capped: up to $2,500, one at a time, a term of up to 24 months, 36% simple annual interest plus a monthly maintenance fee of no more than the lesser of $25 or 8% of the loan. Lenders must check a state database before lending and must be licensed by the State Corporation Commission.

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On this page

The rules
An example
Check the license
Cheaper options to compare
Questions
Sources and limits

The rules

Rule	Virginia limit
Maximum amount	$2,500
Loans at once	One short-term or title loan
Term	Up to 24 months; at least 4 months unless the payment is small relative to income
Interest	Up to 36% simple annual rate
Monthly maintenance fee	Lesser of $25 or 8% of the original loan
Returned payment fee	Actual cost, up to $25

Sources: Virginia SCC pamphlet text ↗; minimum term: Pew summary ↗.

An example

Our arithmetic: $1,000 over 6 months at 36% with a $25 monthly fee is about $184.60 a month in loan payments plus $25 in fees — about $1,258 repaid in total, or $258 in interest and fees.

Check the license

Contact the SCC Bureau of Financial Institutions at (800) 552-7945 or scc.virginia.gov (SCC ↗).

Cheaper options to compare

A payday alternative loan from a federal credit union (APR capped at 28%).
A cash advance app — compare costs with our fee calculator.
Asking the company you owe for more time or a payment plan.
If you already owe a payday loan: extended payment plans and getting out of payday debt.

Questions

Are payday loans legal in Virginia?

Short-term loans are legal under the Fairness in Lending Act, with the limits above. The old two-week payday model is gone.

How many short-term loans can I have?

One. You cannot get a short-term loan if you already have one or a motor vehicle title loan from a licensed lender.

What is the most a lender can charge?

36% simple annual interest plus a monthly maintenance fee of the lesser of $25 or 8% of the original loan, and a returned-payment fee of up to $25.

Sources and limits

Sources checked November 12, 2026. Laws change; confirm with your state regulator before borrowing. This is general information, not legal advice. Worked examples are our own arithmetic. How we use sources.