What a title loan costs — before Hawaii’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Hawaii
- Rate cap
- No title-loan rate exists. Installment loans (which replaced payday loans in 2021) are capped at 36% APR plus a monthly maintenance fee up to $35, for amounts up to $1,500 (HB1192 / Act 56, 2021; HRS ch. 480J).
- Key law
- Hawaii Installment Loan Act — HB1192 (Act 56, 2021), codified at HRS chapter 480J; repealed the deferred-deposit (payday) law effective Jan 1, 2022. No separate title loan act exists.
- Enforcement
- The Hawaii Department of Commerce and Consumer Affairs, Division of Financial Institutions, licenses installment lenders. Because state law does not authorize loans secured by a vehicle title and general small-dollar lending is capped at 36% APR, high-cost single-payment title lending is not a viable licensed product.
Hawaii’s 2021 reform (HB1192) repealed payday lending and caps installment loans at 36% APR plus a $35/month fee; the state authorizes no vehicle-title-secured loan product.
What it means for a Hawaii borrower
Hawaii does not offer traditional high-APR car title loans — no lender can legally give you a payday-style loan secured by your vehicle title. The most you will see on small-dollar loans is a 36% APR installment loan (up to $1,500) plus a modest monthly fee. If an online lender offers a Hawaii “title loan,” treat it as a red flag.
If you already have a title loan in Hawaii
A loan that violates Hawaii’s ban may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- Check whether the lender is licensed in Hawaii — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Hawaii attorney general and the CFPB.
- Ask whether the balance is even collectable under Hawaii law before you pay a collector.
Cheaper first — try these before a title loan in Hawaii
Title Loans and tribal lenders in Hawaii
Many online lenders that market title 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 title loans legal in Hawaii?
In Hawaii, a high-cost single-payment title loan is not legally viable. The state’s rate cap or an outright ban makes a ~300% APR title loan void or unavailable, so licensed title lenders do not operate — and a lender that lends anyway is on weak legal footing.
What is the maximum title loan rate in Hawaii?
No title-loan rate exists. Installment loans (which replaced payday loans in 2021) are capped at 36% APR plus a monthly maintenance fee up to $35, for amounts up to $1,500 (HB1192 / Act 56, 2021; HRS ch. 480J).
What can I do about a title loan I already have in Hawaii?
Because Hawaii effectively bans high-cost title loans, a loan that exceeds the state limit may be partly or fully uncollectible. Check whether the lender is licensed in Hawaii — many high-cost online lenders are not. This is general information, not legal advice.