Yes. Payday loans are legal in California, and lenders must follow Cal. Fin. Code § 23035, § 23036.
Payday loan rules in California at a glance
| Payday loans | Legal, from licensed lenders |
|---|---|
| Fee or rate cap | 15% of the face amount of the check (~460% APR on a 14-day advance) |
| Largest loan | $300 |
| Loan term | Up to 31 days |
| Rollovers and renewals | Not allowed |
| Returned-payment fee cap | $15 |
| Right to cancel | No right to cancel in state law |
| Arrest and criminal charges | Lenders may not threaten arrest or jail to collect |
| Lender license | Required |
| Regulator | Department of Financial Protection and Innovation |
| Statute | Cal. Fin. Code § 23035, § 23036 |
Source: Cal. Fin. Code § 23035, § 23036 (read the law). We last checked it against the statute on August 6, 2026. See payday loan laws in every state.
What a payday loan costs in California
Under California's limits, borrowing $85 for 14 days costs $15 in fees, so you repay $100. That works out to 460.08% APR. Your offer may differ.
| Loan | Term | Fees | Total repaid | APR |
|---|---|---|---|---|
| $85 | 14 days | $15 | $100 | 460.08% |
| $170 | 14 days | $30 | $200 | 460.08% |
| $255 | 14 days | $45 | $300 | 460.08% |
A payday loan is usually repaid in one payment on your next payday, so a fee that looks small is a high APR. Compare it with the APR on any other option before you sign.
If you fall behind
California doesn't let a lender roll a payday loan over into a new one for another fee. Lenders may not threaten arrest or jail to collect a payday loan in California. If a payment bounces, the lender's returned-payment fee is capped at $15.
A federal rule also protects your bank account: after two payment attempts in a row fail, the lender needs your new permission before it tries again (CFPB payday rule).
How to check a lender in California
Payday lenders in California need a state license. Look the lender up in the official license search before you sign. Complaints go to the Department of Financial Protection and Innovation. Lenditup does not check lender licenses for you (see how we verify).
Looking for a loan in California?
A payday loan is due in one payment within weeks. If you would rather spread the cost, compare a personal installment loan first. If a payday loan is still the right fit, you can send one request and see what lenders and lending marketplaces in our network offer.
Lenditup is not a lender. Sending a request does not mean you will be approved; each lender sets its own rates and terms within California law.
Payday loan questions for California
01What is the most a payday lender can charge in California?
02How much can I borrow with a payday loan in California?
03How long can a payday loan last in California?
04Can I roll over a payday loan in California?
05How do I check that a payday lender is licensed in California?
06Is Lenditup a payday lender in California?
Other loan rules in California
Car title loans have their own law: see title loan rules in California. To compare payday rules across states, use the state payday loan law table, or read how payday loans work.