What a payday loan costs — before South Carolina’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 South Carolina
- Rate cap
- No APR cap — the payday finance charge is limited to 15% of principal (~391% APR on a two-week loan), with a $550 max and 31-day term.
- Key law
- South Carolina Deferred Presentment Services Act (S.C. Code Title 34, Ch. 39).
- Enforcement
- The SC Board of Financial Institutions licenses lenders and runs a real-time database. No major tribal AG action verified.
South Carolina caps only the finance charge (15%), which works out to about 391% APR on a two-week loan.
What it means for a South Carolina borrower
High-cost payday lending is legal and enforceable, with only a one-loan-at-a-time and no-rollover safeguard. Tribal and online lenders operate here.
Before you borrow in South Carolina
- Contact the SC Department of Consumer Affairs / Board of Financial Institutions.
- Confirm the lender is licensed under Chapter 39.
Cheaper first — try these before a payday loan in South Carolina
Payday Loans and tribal lenders in South Carolina
Many online lenders that market payday loans to South Carolina 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 South Carolina residents and how state law applies to them, see the South Carolina tribal-lending page.
Tribal loans in South Carolina →Frequently asked questions
Does an online or tribal lender have to follow South Carolina's payday loan rules?
South Carolina applies its rules to loans made to its residents, wherever the lender sits. Tribal lenders argue that sovereign immunity puts them outside state rate caps — an argument courts have accepted in some cases and rejected in others. For which tribal brands lend to South Carolina residents and how the state treats them, see the South Carolina tribal-loan page.
What can I do about a payday loan I already have in South Carolina?
South Carolina allows this lending, so the loan is generally enforceable — but you can still revoke ACH authorization in writing, avoid taking a second loan to cover the first, and file a complaint with the South Carolina attorney general or the CFPB if the lender breaks the rules.