Ultimate Title Loan Interest Rate Guide 2019

Typical Interest Rates on Title Loans Per State


It can be quite simple to acquire a car title loan in Utah as long as you own a car. The Title Lending Registration Actgoverns auto title loans in Utah and sets guidelines that all licensed lenders in the state are required to follow. 

Utah is one of the least regulated states for car title loans and is doing very well economically. The state does not impose any cap on the maximum loan amount or the interest rate charged. 

This actually works in the favor of the borrower, since title loan companies have to compete against each other for the lowest rate on offer. However, you need to make sure that you do your homework and shop around for the best loan terms and conditions.

Typically, the interest rate charged in Utah on car title loans is 25% monthly. However, this amount can exceed if you own the car jointly or if there are remaining standard loan installments on the car. 


The Virginia state government places restrictions on title loans in the state since the federal government is not known to actively participate. 

Title 6.2 of the code of Virginia governs title loans in the state. This code ensures the rights and responsibilities of borrowers in Virginia.

There are strict rules in this state where title loan interest rates are concerned. The amount of loan decides the maximum interest rates for title loans. Title loans that are $700 or less cannot be charged with an interest rate higher than 22%.

For title loans between $701 and $1,400, the maximum interest rate is 18% per month. Lenders cannot charge more than 18% if offering car title loans, regardless of the risk associated.

The maximum rate of interest on title loans that are $1,401 or more is 15% per month. Virginia protects its borrowers from high interests on title loans. There are many states where the interest rates are between 26% and 33%. 


Montana is among the few states that is pro-borrower where title loans are concerned. The interest rates are capped at 36% per annum as compared to monthly double digit rates in other states.

This is just 3% interest rate per month on a loan which does not take your credit score into account. In fact, almost all car title loan lenders in Montana offer these loans to people with bad credit scores.

The State of Montana has capped the fees for defaults and deferrals as well. It cannot be higher than 5% of the principal amount or $15 (whichever is greater).

However, because the typical interest rates are low, there are restrictions on the total amount you can borrow as well. This is to protect the average borrower from falling too deep into debt. 


There is no restriction placed on car title loans in terms of interest charged in Idaho. A lender can charge any interest rate on the loan amount based on your risk calculation. 

However, typically the rate of interest on auto title loans in Idaho is between 30% and 45% monthly and Idaho is a high quality of life state. This translates to an APR between 391% and 585%. 

It is your responsibility to find the most reasonable rates of interest and other charges. This is one of the least restricted states where car title loans are concerned. There is no set cap on the maximum amount you may borrow.

However, the loan amount will be at the lender’s discretion based on the value of your vehicle and the equity you hold in it. 

You can get a lower interest rate loan by showing viable source of income and by convincing the lender that you are a low risk borrower. Lenders offer lucrative interest rates when you borrow a lesser amount on a high valued car because it lowers their risk.


There are two laws that regulate car title loans: Chapter 537 and Chapter 516 under the Florida Title Loan Act. The Florida government has set maximum legal limits on the interest rate charged by a lender.

A licensed lender offering title loans in Florida cannot charge more than 30% per annum as simple interest. This amount is reduced to 24% of the principal if the car is valued over $2,000 and 18% if the car is worth more than $3,000 and remember Florida is a no state income tax state which is one reason why their economy is doing well.

However, this is just the maximum interest rate as prescribed by the government. It is possible that you may qualify for a lower interest title loan in Florida if you are a low risk borrower. 

For instance, if you have a viable source of income and a strong financial background, or if your car is worth much more than your loan amount. 

Florida does have some of the fastest title loan approval times in the US, most loans can be arranged in under 24 hours.


Delaware is among the many states that have placed restrictions on various aspects of car title loans. Primarily, caps on interest rates protect customers from financial ruin and getting stuck in a revolving debt trap.

While lenders can charge whatever they want in terms of interest rates in Delaware, the state has a number of regulations in place to ease the borrower’s burden of deep indebtedness.

The typical interest rate in this state is 25 percent a month, which equals to 300 percent APR, or annual percentage rate. However, if the fees and interest paid exceed the unpaid proceeds of the loan, the lender will have to refund that to the borrower provided the lender failed to make appropriate disclosures. These loans are designed for short term uses such as for emergency loans with no job.

An important thing to make note of in Delaware title loans is that the lender is allowed to keep charging interest rates on the balance loan amount, even after they take possession of your car and sell it to recover damages, in the event of non-payment.


Only licensed lenders are authorized to offer car title loans in Illinois. Where interest rate is concerned, Illinois regulations require all lenders to calculate it on simple interest basis and not compound interest. 

This means that you cannot be charged interest rate on any outstanding interest balance or interest fees that has not been paid.

There are no caps placed by the government on interest rates in the state of Illinois for title loans. This means that lenders set their own rates that can vary as per the lender you choose.

It’s vital that you choose wisely after asking for quotations from multiple lenders. You must also carefully consider all the terms of a loan before agreeing to that loan.

On an average interest rate charged by most lenders on title loans is not more than 25% in Illinois. However, it may be more if you are a high risk borrower. 


Maryland does not allow title loans. However, residents of Maryland can always head over to Virginia to acquire a car title loan with an out-of-state title. 

All rules and regulations pertaining to Virginia title loans shall apply since the actual loan contract cannot be signed on Maryland soil. In fact, Maryland government prohibits any advertisements or loan solicitations directed towards the residents of the state. 

In Virginia, the typical interest rate charged is based on the amount of loan borrowed. It is 22% for loans lower than $700, 18% for loans between $701 and $1,400, and 15% for higher amount loans. 

If you are a resident of Maryland and looking for a car title loan, then Virginia may be the nearest and best option. However, there are other states as well that offer these loans which may have even lower interest rates. 


Car title loans have a bad rep for being high interest loans. The high interest rate helps cover the risk associated with these loans. 

Arizona State is one of the more borrower-friendly states to get a title loan due to the Arizona title loan laws. Through Arizona Revised Statutes Title 44 – Trade and Commerce 44-291, the state puts caps on the title loan interest rates. 

Arizona uses a sliding interest rate table and is where there are very good prices for homes. So this is where the maximum monthly interest rate depends on the amount of the loan provided by the title loan company, with less expensive loans having higher maximum interest rates.

The maximum monthly interest rate that a title loan company can charge is 17% if the car title loan is $500 dollars or less. The interest is reduced to 15% when the loan amount increases to an amount between $501 and $2,500. 

The maximum monthly interest rate is 13% when the loan amount is between $2,501 and $5,000. The lowest monthly interest rate is 10% when the loan amount is $5,001 or more. 

The interest rate caps as set by Arizona are some of the lowest in the nation. 


As per California Car Title Loan Laws and Regulations a licensed lender of title loans cannot charge more than the prescribed limit by the state government. 

It is important to note that the minimum loan amount in California is $2,500 for title loans. If the loan is at exactly $2,500, title loan laws in California allow a lender to charge either $50 or up to 5 percent of that amount (whichever is lower). 

The interest is capped at $75 for loan amount between $2,501 and $4,999. There is no capped interest rate for any amount higher than $4,999. 

As such the environment in california is great when seeking a car title loan for older vehicles.

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