Title Loans in Sacramento

California Title Loan Regulations and Key Details

California has no separate title loan statute. A title loan here is a consumer loan secured by your vehicle, made under the California Financing Law by a lender licensed with the Department of Financial Protection and Innovation. The law caps interest in three bands by loan size and spells out what a lender must do before and after a repossession.

California Title Loan Rules at a Glance

What a Title Loan Costs in California

Most California title loans fall in the $2,500 to $9,999 band, where the cap is 36% per year plus the Federal Funds Rate. The federal piece moves over time; it is read from the Federal Reserve's H.15 release as of the first day of the month before the loan is made, and it puts the ceiling at about 39.63% in August 2026.

Interest is simple interest on the unpaid balance for the days actually elapsed, so every payment shrinks the balance next month's interest is figured on. A one-time administrative fee of up to $75 can be added at the start.

The table shows the statutory maximum with that fee included, not a quote; the APR column counts the fee, which is why a smaller, shorter loan shows a higher APR than the capped rate alone.

A longer schedule lowers the monthly payment but raises the total interest, so the cheapest loan is the largest payment you can comfortably carry over the shortest term. What a lender offers you depends on your vehicle, the amount, and your income.

Consumer Protections in California

• A lender in the capped band must report your payment history to a national credit bureau and offer you a free credit education program, so on-time payments can build your credit file (§ 22304.5).
• Charges are computed as simple interest for the days actually elapsed, so partial payments and early payoff always cut the interest you pay (§ 22307).
• The repossession notice must itemize what you owe, name where to pay, and state your redemption and reinstatement rights before any sale (§ 22328).
• After a sale you are entitled to a written accounting of the proceeds and costs, automatically whenever there is a surplus and on request otherwise (§ 22328).

Governing law: the California Financing Law. Section 22304.5 holds the 36% plus Federal Funds Rate cap, section 22303 the sub-$2,500 tiers, section 22305 the fee limits, and section 22328 the repossession, notice, redemption, and deficiency rules. Lenders are licensed and examined by the California Department of Financial Protection and Innovation, which also takes borrower complaints.