Loan Rates and Fees in Pennsylvania

Pennsylvania does not license payday lenders or authorize short-term, single-payment lending at rates above its usury limits. If you've received a payday-style offer from an online lender claiming to operate in Pennsylvania, verify the lender holds a valid Pennsylvania license with the Pennsylvania Department of Banking and Securities.

Licensed installment lenders in Pennsylvania operate under the Consumer Discount Company Act (CDCA), which uses an add-on interest model - meaning interest is calculated on the original loan amount at the time the loan is made and built into your fixed payment schedule. The maximum rate is $9.50 per $100 borrowed per year for loan terms up to 48 months; for any portion of a term beyond 48 months, the rate drops to $6.00 per $100 per year.

No separate origination or processing fee is verifiable under the CDCA from publicly available statute text - if your offer includes an upfront fee beyond the interest rate, confirm the lender can cite the specific rule, or contact the Pennsylvania Department of Banking and Securities before you sign.

On a $2,000 loan repaid over 12 months at the maximum add-on rate of $9.50 per $100 per year, the interest is $2,000 ÷ 100 × $9.50 = $190, making your total repayment approximately $2,190 in 12 equal monthly payments of roughly $182.50.

• Refinancing restarts interest on the new amount - compare your remaining balance to the new loan's total of payments before you agree.
• The returned-payment fee cap is not separately specified in publicly available CDCA statute text - ask the lender for the exact amount before you sign, or verify with the Pennsylvania Department of Banking and Securities.
• Late fees: the CDCA allows a delinquency charge of $20 or 10% of the payment in default, whichever is higher, after the payment is more than 15 days past due.
• If you pay early, the unearned portion of the interest must be refunded to you - see Installment loans in Pennsylvania for details on how early payoff reduces your cost.

If an offer exceeds these limits, verify with the Pennsylvania Department of Banking and Securities.

• Total of payments: the single most important number - this is what you'll actually repay over the full term, including all interest and fees.
• Payday-style offers: Pennsylvania doesn't license payday lenders - if an offer uses a single lump-sum repayment with a fee well above the CDCA add-on rate, confirm the lender holds a valid Pennsylvania license.
• Military households: if you or your spouse are active-duty, the all-in cost can't exceed 36% MAPR under the Military Lending Act - compare to the APR on your offer.