Payday loans in Delaware
Delaware permits payday loans as short-term consumer loans from licensed lenders under 5 Del. C. 2235A, which sets no maximum rate but caps annual loans at five.
- Payday lending
- Allowed
- Max cost
- None in the law
- Top amount
- $1,000 (a loan of $1,000 or less qualifies as a short-term consumer loan)
Are payday loans legal in Delaware?
Yes, licensed lenders in Delaware can legally offer payday loans as short-term consumer loans per the Delaware Licensed Lenders law. With a payback window under 60 days, these loans go up to $1,000. Since Delaware imposes no price cap, your loan contract determines the interest rate a licensed lender may charge. However, you may not take more than five of these loans from all licensed lenders within any 12 months. A rollover extends your current loan, counts toward your five-loan limit, and you may do this up to four times per loan.
Lenders must first check a statewide database, and any loan exceeding the five-loan limit is void, so the lender cannot collect it. You may cancel without cost by returning the full borrowed sum before the next working day ends. Add up how many loans you had during the past year before you apply. If the rate stated in the contract is too high, return the money on the next workday.
- Delaware places no cap on interest or fees for licensed lenders, so the rate depends on what the loan agreement states.
- In any 12 months, Delaware allows only five short-term consumer loans per borrower instead of capping prices, and any loan over this is void.
- A statewide database checks every short-term loan; this system began on January 1, 2013 under HB 289, which was approved June 27, 2012.
- You have the right to return the full sum by the end of the next working day with no fee.
- Every loan application needs to be written in English and also in Spanish.
- The State Bank Commissioner's figures show a shrinking market: APR averaged 532% in 2015, reached 3,650% at the top, and 2022 had just 47 loans.
Delaware payday loan laws
- Law in force
- Short-term consumer loan rules of the Delaware Licensed Lenders law (Title 5, Chapter 22, Subchapter III)
- Cited as
- 5 Del. C. 2227, 2229, 2235A to 2235C
- Fees under the law
- A licensee may collect and charge interest at daily, weekly, monthly, annual, or other periodic rates that the loan agreement provides.
- Most you can borrow
- $1,000 (a loan of $1,000 or less qualifies as a short-term consumer loan)
- How long a loan runs
- A repayment period stated as less than 60 days defines this loan type.
- Rollovers
- An existing short-term consumer loan may have no more than 4 rollovers.
- Loans you can hold at once
- In any 12-month period, the total from all licensees cannot exceed 5 short-term consumer loans, with rollovers and refinancings included.
- Repayment plan
- once the maximum rollovers are used, a licensee may agree to a workout: equal installments over at least 90 days, and converting adds no fee or interest
- Installment lending limits
- The loan agreement sets the interest rate that licensed lenders may charge (5 Del. C. 2229); for lenders without a license, the general cap is 5% over the discount rate set by the Federal Reserve (6 Del. C. 2301)
Also checked against regulations.delaware.gov. Full statute text.
Online lenders that list Delaware
Eleven companies we track say they lend in Delaware: 3 online installment lenders, 1 store and online lender, 6 tribal lenders and 1 loan broker.
| Lender | Kind | Posted APR |
|---|---|---|
 NetCredit | Installment | 34.99% to 99.99% |
 OppLoans | Installment | 99% to 195% |
 Rise Credit | Installment | 60% to 299% |
 ACE Cash Express | Store and online | 122.4% to 769.1% |
 Viva Payday Loans | Broker | Partner lenders quote 4.99% to 1,386% |
Tribal loans in Delaware
Under Delaware law, unlicensed lenders follow the general interest rules in Title 6 rather than licensed lender rules, and licensees cannot use the Internet or electronic methods to bypass short-term loan limits; no action by the AG or Commissioner against online or tribal lenders was found.
On the immunity claim tribal lenders make, see are tribal loans legal.
Six tribal lenders we track list Delaware as a state they lend in. Three of the six publish an APR, from 73.7% to 725%.
| Lender | Posted APR |
|---|---|
 Mobiloans | 73.7% to 405% |
 Spotloan | 99% to 490% |
 BrightLending | 325% to 725% |
 MaxLend | Not published |
 Minto Money | Not published |
| American Web Loan | Not published |
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Delaware and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| Delaware | Allowed | None in the law | $1,000 (a loan of $1,000 or less qualifies as a short-term consumer loan) |
| Maryland | Banned | On the first $1,000, the rate is 2.75% monthly, or about 33% APR. | None allowed |
| New Jersey | Banned | 30% APR | None allowed |
| Pennsylvania | Banned | None in the law | None allowed |
Delaware loans with no credit check
Installment loan rates: The loan agreement sets the interest rate that licensed lenders may charge (5 Del. C. 2229); for lenders without a license, the general cap is 5% over the discount rate set by the Federal Reserve (6 Del. C. 2301).
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in Delaware
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the Delaware Office of the State Bank Commissioner.
- Had trouble with a lender? Report the lender.
Sources for Delaware
- Short-term consumer loans have a stated repayment period under 60 days and a maximum size of $1,000.; The repayment period stated must stay below 60 days.; Licensed lenders may charge whatever interest rate the loan agreement specifies.delcode.delaware.gov
- HB 289 (78 Del. Laws, chapter 278) became effective January 1, 2013.; The Act built a shared real-time database for licensees.legis.delaware.gov
- Title 6 covers loans from unlicensed lenders under its general interest chapter.delcode.delaware.gov
- The Federal Reserve discount rate plus 5% establishes the general rate limit.delcode.delaware.gov
- During 2015, short-term loan APRs hit 3,650% while averaging 532%.banking.delaware.gov
- Delaware saw only 47 short-term consumer loans issued in 2022.banking.delaware.gov
- Under contract with the Commissioner, Catalis, which succeeded Veritec Solutions, runs the database.banking.delaware.gov
- Weekly-updated lists of licensed lenders and other licensed non-depository institutions are published by the Commissioner.banking.delaware.gov
- Complaints get investigated by the Commissioner's compliance area, including ones about small loan companies.banking.delaware.gov