Hawaii
Hawaii Payday Loan Lenders Welcome Regulations
Hawaii payday loan lenders who offer short-term loans are eager to combat the image that they’re locking low-income borrowers into a cycle of escalating debt.
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Payday Loans in Hawaii
Payday Loan Laws in Hawaii (2026)
Hawaii abolished the old payday loan in 2021. Act 56 (effective January 1, 2022) ended the deferred-deposit payday loan — which had carried APRs up to about 459% — and replaced it with a licensed installment loan: principal up to $1,500, interest capped at 36% plus a small monthly maintenance fee, with total charges limited to 50% of the principal.
| Status | Legal — reformed (the old payday loan was abolished in 2022) |
|---|---|
| Interest cap | 36% per year |
| Monthly fee | A maintenance fee of $25–$35 (tiered by principal) |
| Total-charge cap | No more than 50% of the principal |
| Maximum loan | $1,500 |
| Loan term | 2–4 month minimum, up to 12 months (installments) |
| 2025 update | The maintenance fee must now be prorated daily (SB1367) |
| Regulator | Division of Financial Institutions (DFI) |
| Law | HRS ch. 480J, enacted by Act 56 / HB1192 (2021) |
What Hawaii's 2021 reform means for you
- The old two-week payday loan (APRs up to ~459%) is gone — replaced by an installment loan capped at 36% interest.
- Loans run up to $1,500 over 2–12 months, with a small monthly maintenance fee ($25–$35) and total charges capped at half the principal.
- A 2025 update requires the maintenance fee to be prorated daily, so it stops growing once you repay.
- Lenders must be licensed as installment lenders with the Division of Financial Institutions.
Problem with a lender? File a complaint
Installment lenders in Hawaii are licensed by the Division of Financial Institutions. To report a violation or an illegal lender, use the online complaint form.
Alternatives to a payday loan
Even at 36%, compare a credit-union payday-alternative loan, an employer paycheck advance, or a payment plan with the biller first. See our guide to payday loans and alternatives.
Disclaimer: general information, not legal or financial advice. Laws change — verify the current rules with the Hawaii Division of Financial Institutions (DFI) before borrowing. Last reviewed 2026.
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Frequently asked
Are payday loans legal in Hawaii?
The old payday loan was abolished in 2021. It was replaced by a licensed installment loan capped at 36% interest plus a small monthly fee, up to $1,500.
What is Hawaii's interest cap on small loans?
36% a year, plus a monthly maintenance fee of $25–$35, with total charges capped at 50% of the principal.
How much can you borrow in Hawaii?
Up to $1,500, repaid in installments over 2 to 12 months.
Can I still get a two-week payday loan in Hawaii?
No. The single-payment payday loan was eliminated in 2022; these loans are now installment loans capped at 36% interest.
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