The Short Term Loan
Va. Code 6.2-1817 — interest at a simple annual rate not to exceed 36 percent, and a capped monthly fee
Interest and the monthly fee. A licensee may charge interest at a simple annual rate not to exceed 36 percent, and a monthly maintenance fee no greater than the lesser of eight percent of the original loan amount or $25, not added to the balance that bears interest.
Other charges. A returned item fee may not exceed $25, a late charge may not exceed $20, and damages and costs in a collection suit after default may not exceed the original loan amount.
Sixty days before a lawsuit. A licensee may not file or start a legal proceeding against a borrower until 60 days after the date of default, and during that time the two may voluntarily agree to a repayment arrangement.
The posted examples. Each office posts a schedule of fees and interest with examples of a $300 loan repaid in three months, a $500 loan repaid in five months, and a $1,000 loan repaid in 10 months.
Licensing, the disclosures the lender owes, and what happens when a check is returned are set out in other parts of the law that are not on this page. Whether a particular loan broke these limits is a question for the state's financial regulator or a licensed Virginia attorney.
Sources for this section (2)
- Va. Code 6.2-1816 — Short-term lender business methods
- Va. Code 6.2-1817 — Authorized fees and charges on a short-term loan
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed Virginia attorney.