What a payday loan costs — before Hawaii’s rules
A payday loan typically costs $15–$20 per $100 borrowed for a two-week term — roughly 400% APR — and is due as a single lump sum on your next payday. That single-payment structure, not the fee on any one loan, is the trap: most fees come from borrowers who cannot clear the balance in one go and roll it over. Where a state caps rates below payday levels, licensed payday lending disappears and a loan above the cap is generally void — not legally collectible, whatever the contract says.
The law in Hawaii
- Rate cap
- 36% APR cap on small-dollar installment loans (plus limited monthly fees), effective January 1, 2022; single-payment payday loans are prohibited.
- Key law
- Hawaii Act 56 / HB 1192 (2021), small-dollar lending reform.
- Enforcement
- No major tribal-specific state action verified; the Division of Financial Institutions licenses lenders.
Hawaii’s 2021 Act 56 abolished single-payment payday loans and capped small-dollar loans at 36% APR, effective January 1, 2022.
What it means for a Hawaii borrower
Old-style payday loans are banned and rates are capped at 36% APR, so tribal high-interest loans conflict with state law and are challengeable. Lenders serving Hawaii must be licensed installment lenders.
If you already have a payday loan in Hawaii
A loan that violates Hawaii’s rate limits may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- File a complaint with the Hawaii Division of Financial Institutions (DCCA).
- A loan above 36% APR from a non-exempt lender likely violates Act 56.
Cheaper first — try these before a payday loan in Hawaii
Payday Loans and tribal lenders in Hawaii
Many online lenders that market payday loans to Hawaii residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Hawaii residents and how state law applies to them, see the Hawaii tribal-lending page.
Tribal loans in Hawaii →Frequently asked questions
Are payday loans legal in Hawaii?
In Hawaii, payday loans are legal but tightly limited. The state caps loan size, fees or rollovers, so a legal payday loan looks different — and costs less — than the ~400% APR norm, and any lender exceeding those limits is out of compliance.
What is the maximum payday loan rate in Hawaii?
36% APR cap on small-dollar installment loans (plus limited monthly fees), effective January 1, 2022; single-payment payday loans are prohibited.
What can I do about a payday loan I already have in Hawaii?
Because Hawaii restricts high-cost payday loans, a loan that exceeds the state limit may be partly or fully uncollectible. File a complaint with the Hawaii Division of Financial Institutions (DCCA). This is general information, not legal advice.