Personal Installment Loans in Washington
Primo Personal Loans is a direct lender serving Washington residents, including Seattle, Spokane, and Kennewick. Apply online in minutes for a personal installment loan, get a decision the same business day, and repay on a fixed schedule you know before you sign.
Washington installment loans at a glance: Personal installment loans are legal in Washington and regulated by the Department of Financial Institutions under RCW 31.04.105. Rates are capped at 25% per annum. There is no prepayment penalty, so paying the loan off early reduces what you owe, and lenders must disclose the full APR and payment schedule before you sign. Washington also allows payday loans.
Rules current as of July 2026.
Personal Installment Loan Rules in Washington
Governing law: RCW 31.04.105
Rates & Terms for Personal Installment Loans in Washington
The maximum annual percentage rate (APR) for personal installment loans in Washington is capped at 25% per annum, as per RCW 31.04.105. An origination fee of up to 4% on the first $20,000 and 2% thereafter is allowed. A license is required to offer these loans, according to RCW 31.04.035.
What a Personal Installment Loan Costs in Washington
| Loan Amount | Term | APR (est.) | Total Interest | Total to Repay |
|---|---|---|---|---|
| $1,000 | 24 months | 25% | $274 | $1,274 |
| $5,000 | 24 months | 25% | $1,371 | $6,371 |
| $10,000 | 24 months | 25% | $2,742 | $12,742 |
Washington state law allows lending at a rate not exceeding 25% per annum as per RCW 31.04.105. The lender must provide a Truth-in-Lending disclosure showing the exact APR before signing.
What Washington Residents Should Know
Washington residents should be aware that personal installment loans have an APR cap of 25% per annum. Additional fees may apply, such as origination fees, which are capped by statute.
Consumer Protections in Washington
Consumers are protected by a prohibition on prepayment penalties, allowing borrowers to repay loans early without additional charges. Late fees are capped at 10% of any installment payment delinquent for ten days or more. License verification can be conducted through the Department of Financial Institutions' website.
Prohibited Practices
- Threats of criminal prosecution
- Wage garnishment
- Rollover
- Loan stacking
- Charging more than statutory fee cap
- Misleading advertising
- Unlicensed lending
- Fraudulent loan terms
Required Disclosures
- APR posting
- Fee schedule
- Contract in primary language
- License number
- Installment plan availability
- Prepayment penalty prohibition
- Origination fee cap
Debt Collection Rules
- Wage garnishment for this debt: not permitted
- Criminal prosecution for non-payment: not permitted
- Licensee may charge a one-time installment plan default fee of twenty-five dollars.
Complaint Agency: Washington State Department of Financial Institutions — 1-800-562-6000 (File a complaint)
Verify Lender License: https://dfi.wa.gov/consumers/find-company
Prepayment & Refinancing Rules in Washington
Understanding your repayment flexibility is important when choosing a personal installment loan in Washington.
- No prepayment penalty — Washington law prohibits lenders from charging fees for early repayment of a personal installment loan.
Federal Consumer Protections for Installment and Payday Loan Borrowers
| Federal Law | What It Gives You | Citation |
|---|---|---|
| Truth in Lending Act / Regulation Z | Regulation Z protects consumers by requiring clear disclosure of key credit terms and costs. | 15 U.S.C. § 1601 et seq.; 12 CFR Part 1026 |
| Military Lending Act | The MLA caps the annual percentage rate at 36% for loans to active duty service members and their dependents. | 10 U.S.C. § 987 |
| Fair Debt Collection Practices Act / Regulation F | Regulation F governs the practices of debt collectors, prohibiting abusive, deceptive, and unfair practices. | 15 U.S.C. § 1692; 12 CFR Part 1006 |
| Fair Credit Reporting Act / Regulation V | Regulation V ensures accuracy and privacy of consumer credit information held by credit reporting agencies. | 15 U.S.C. § 1681; 12 CFR Part 1022 |
| Equal Credit Opportunity Act / Regulation B | Regulation B prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, or age. | 15 U.S.C. § 1691; 12 CFR Part 1002 |
| CFPB UDAAP authority | The CFPB can take action against unfair, deceptive, or abusive acts or practices in consumer financial products or services. | 12 U.S.C. § 5531, 5536 |
These federal protections apply in all 50 states regardless of state law. They set a baseline floor of consumer rights.
Full detail on each of these six federal protections, including what your lender must disclose before you sign and the 36% rate cap that applies to active-duty service members.
Federal Payday Lending Rules That Apply in Washington
Federal regulations, such as those from the CFPB and the Military Lending Act, apply in addition to state laws, providing an additional layer of consumer protection.
Washington Installment Loan Rules: FAQ
Yes. Personal installment loans are legal in Washington and regulated under RCW 31.04.105. Lenders must hold a state license to make these loans. A licensed lender has to follow the state's limits on rates, loan size and fees, and disclose your APR, finance charge and full payment schedule before you sign.
In Washington, the maximum rate on a personal installment loan is 25% per annum under RCW 31.04.105. That is a ceiling, not a quote: your actual APR depends on the loan amount, the term and the lender, and it must be disclosed in writing before you sign.
Yes, and without a penalty. Washington law does not allow a lender to charge a prepayment penalty on a personal installment loan under RCW 31.04.105. Paying ahead of schedule cuts the interest you owe, because interest accrues on the balance you still carry.
Washington caps loan fees separately from interest under RCW 31.04.105. Origination fee: 4% of the first $20,000 and 2% thereafter. Late fee: 10% of any installment payment delinquent ten days or more. Anything a lender charges beyond these has to be itemised in your agreement, so compare the total finance charge and not just the advertised rate.
Washington requires consumer installment lenders to hold a state license under RCW 31.04.105, and publishes a licensee lookup at https://dfi.wa.gov/consumers/find-company. Check the lender there before you share bank or Social Security details. An unlicensed lender operating in the state is not bound by these rate and fee limits.
Yes. Alongside installment lending, Washington permits payday loans under Wash. Rev. Code Ann 31.45.010 et seq. A payday loan there is capped at $700 and a term of up to 45 days. Rollovers are not permitted. A payday loan is a single lump-sum repayment tied to your next pay date, which makes it a different and usually far more expensive product than an installment loan repaid over months.
