Car Title Loan Laws

Car Title Loan Laws

Title loan laws in the USA and Canada are dynamic. This page became obsolete the moment we uploaded it to!

Starting a title loan business? Review this page and consider the laws, license fees, net worth requirements and the need for a bond in your state.


The fact that YOU reside in a State that is not appealing to car title loan lending does not negate your ability to offer car title loans via the Internet. With the aid of car title loan software management platforms (refer to our Title Loan  Manual software chapter for discussion and details) and your ability to form an entity (LLC, S-Corp, C-Corp, holding company…) or simply partnering with an operator in a more favorable State, it’s not a huge leap in today’s environment to put your capital to work in the title loan industry. Certainly the financial returns can be much greater than being satisfied with the sub-one percent interest returns available from bank CD’s!

A licensing requirement for having a physical location can often be met simply by having a small “office” located on the 3rd floor of a non-descript building open from 1-3 P.M. one day per month by appointment only. 🙂

Be aware that bonds are purchased for fees that typically range from $200 to $500 per year from insurance or “bonding” companies that specialize in the car title loan and payday loan niche. (For a list of these companies, refer to our Title Loan Manual.)

Net worth requirements can be met in a multitude of ways. And, be aware that, depending on your State, the funds required to meet minimum net worth requirements can often be used to run your business and be used to pay the various line items/expenses incurred by your car title loan business startup. (Again, for details, refer to our Title Loan Manual.)

Car title loan laws change often! Use the “Car Title Loan Laws Table” below to BEGIN your research.

When you invest in our “Car Title Loan Manual,” you’ll receive more definitive, specific information regarding your latest state laws, sample contracts and additional reports, documents, licensing applications, etc.

Here’s our contact info for Trihouse Consulting. In addition to owning and operating our own lending centers offering car title loans, installment, line of credit and payday loans, we offer consulting and instruction for lenders and operators. 702-208-6736

Car Title Loan Laws

Car title loan laws by State
StateLicense TypeLicense FeeNet WorthSurety BondNotesPhysical Office Req.Branch LicenseRenewal Period
AlabamaTitle Loan600$25,000NoYesYesDec.Yearly
ArizonaTitle Loan1050NA10-15,000204% APR on first $100; 180% on the next $2000; 156% on the next $2500; 120% on the remaining balance.YesYesSept./Yearly


CFL License30025,00025,000Min. $2500 loan principal.YesYes1 year
DelawareTitle Loan500$40K$25KNoYesDec./Yearly
FloridaFlorida Title Loan Act62500Operators overcome allowable APR via various add-on fees. Title loan lender may charge a maximum interest rate of 30 percent per annum computed on the first $2,000 of the principal amount, 24 percent per annum on that part of the principal amount exceeding $2,000 and not exceeding $3,000, and 18 percent per annum on that part of the principal amount exceeding 3,000. NoYesEvery 2 years
GeorgiaTitle Loan7400$50K300% APR for 1st 3 months; 150% thereafter; lien fee.NoYesJune/Yearly
HawaiiTitle Loan1000$15KYesYesDec. every even year.
IdahoTitle Loan350$10K$25KNoYesOct./Yearly
IllinoisTitle Loan2700$50K$20K$4K max loan; monthly payments not to exceed 50% of borrower's income.NoNoDec./Yearly
IowaTitle Loan5000$50KNoYesJune/Yearly
KansasTitle Loan250Offered as open-ended line of credit.NoYesAu. odd years
KentuckyTitle Loan3000$50KNoYes
LouisianaTitle Loan445$50K or audited financials of $50KYes or $50K bond$25,000 start-up cash requirement. After licensure, you may utilize the funds to make loan, pay expenses, etc.
MassachusettsSee notes.1100$25K$75KTitle loans are offered in MA under various guises and license work-arounds. It's not atypical for a MA borrower to pay 12%APR in addition to a 20% transaction fee at the front-end of the loan. Lenders do take title to the vehicle.YesYes
MichiganTitle Loan800$25KSee code...NoNoJune/Yearly
MinnesotaTitle Loan$1150/year$25K$50KNoNo2 years
MississippiTitle Loan300$25K$25K300% APR.NoNoEvery 2 years
MissouriTitle Loan800$25K$25KSimple "merchant License" required.YesNoEvery 2 years
MontanaTitle Loan5000$25KYesYesDec./Yearly
NevadaTitle Loan260000YesYesDec./Yearly
New HampshireTitle Loan5000$20K25% of loan principal. 10 month max. loan term. 60 day cooling off period. 300% APR; lien fee.NoYesNov./Yearly
New JerseyProhibited
New MexicoTitle Loan4000$25KNoYes, free to register.1 Year
New YorkProhibited
North CarolinaProhibited
North DakotaProhibited
OhioTitle Loan/CSO350Operators employ CSO modelYesYesDec./Yearly
OklahomaSee Notes:It's typical to charge a 20% "transaction fee" and a 9% APR to the borrower!
Rhode IslandProhibited
South CarolinaTitle Loan7500$10KTitle loans above $600 are not subject to loan limits.YesYesSept./Yearly
South DakotaTitle Loan3650$25KNoNoNov./Yearly
TenneseeTitle Loan600$25K$90KCost is limited to 1/5 of loan principal plus 24% APR.NoVov./Yearly
TexasTitle Loan/CSO500CAB/CSO lic. model used. YesYesDec./Yearly
UtahTitle Loan27500NoYes2 years from date issued.
VirginiaTitle Loan5000$25K264% APR on first $700. 216% on next $700; 180% on remaining balance; lien fee.NoYesNo. Annual Report due...
Washington D.C.Title Loan1000$10K$12.5K - $50K predicated on loan volume.NoYesAnnually
West VirginiaProhibited
WisconsinTitle Loan1000$250K$120KNoNoEvery 2 years

How to Start Title Loan Biz

How to Start Title Loan Biz

Ready to begin? You want to start or improve a car title loan business? 60 day “no questions asked” return policy. We do not get returns! We know what we’re talking about. No one else does what we do nor offers “how-to” and regular updates for the car title loan industry. Click to “Order Now” via Visa, Mastercard, American Express, Paypal or Bitcoin.