Title loan laws in the USA and Canada are dynamic. This page became obsolete the moment we uploaded it to AutomobilePawn.com!
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 Jer@TrihouseConsulting.com
|State||License Type||License Fee||Net Worth||Surety Bond||Notes||Physical Office Req.||Branch License||Renewal Period|
|Arizona||Title Loan||1050||NA||10-15,000||204% APR on first $100; 180% on the next $2000; 156% on the next $2500; 120% on the remaining balance.||Yes||Yes||Sept./Yearly|
|CFL License||300||25,000||25,000||Min. $2500 loan principal.||Yes||Yes||1 year|
|Florida||Florida Title Loan Act||625||0||0||Operators 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.||No||Yes||Every 2 years|
|Georgia||Title Loan||740||0||$50K||300% APR for 1st 3 months; 150% thereafter; lien fee.||No||Yes||June/Yearly|
|Hawaii||Title Loan||100||0||$15K||Yes||Yes||Dec. every even year.|
|Illinois||Title Loan||2700||$50K||$20K||$4K max loan; monthly payments not to exceed 50% of borrower's income.||No||No||Dec./Yearly|
|Kansas||Title Loan||250||Offered as open-ended line of credit.||No||Yes||Au. odd years|
|Louisiana||Title Loan||445||$50K or audited financials of $50K||Yes or $50K bond||$25,000 start-up cash requirement. After licensure, you may utilize the funds to make loan, pay expenses, etc.||Yes||Yes||Dec./Yearly|
|Massachusetts||See notes.||1100||$25K||$75K||Title 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.||Yes||Yes|
|Michigan||Title Loan||800||$25K||See code...||No||No||June/Yearly|
|Minnesota||Title Loan||$1150/year||$25K||$50K||No||No||2 years|
|Mississippi||Title Loan||300||$25K||$25K||300% APR.||No||No||Every 2 years|
|Missouri||Title Loan||800||$25K||$25K||Simple "merchant License" required.||Yes||No||Every 2 years|
|New Hampshire||Title Loan||500||0||$20K||25% of loan principal. 10 month max. loan term. 60 day cooling off period. 300% APR; lien fee.||No||Yes||Nov./Yearly|
|New Mexico||Title Loan||400||0||$25K||No||Yes, free to register.||1 Year|
|Ohio||Title Loan/CSO||350||Operators employ CSO model||Yes||Yes||Dec./Yearly|
|Oklahoma||See Notes:||It's typical to charge a 20% "transaction fee" and a 9% APR to the borrower!|
|South Carolina||Title Loan||750||0||$10K||Title loans above $600 are not subject to loan limits.||Yes||Yes||Sept./Yearly|
|South Dakota||Title Loan||365||0||$25K||No||No||Nov./Yearly|
|Tennesee||Title Loan||600||$25K||$90K||Cost is limited to 1/5 of loan principal plus 24% APR.||No||Vov./Yearly|
|Texas||Title Loan/CSO||500||CAB/CSO lic. model used.||Yes||Yes||Dec./Yearly|
|Utah||Title Loan||275||0||0||No||Yes||2 years from date issued.|
|Virginia||Title Loan||500||0||$25K||264% APR on first $700. 216% on next $700; 180% on remaining balance; lien fee.||No||Yes||No. Annual Report due...|
|Washington D.C.||Title Loan||1000||$10K||$12.5K - $50K predicated on loan volume.||No||Yes||Annually|
|Wisconsin||Title Loan||1000||$250K||$120K||No||No||Every 2 years|
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.