Georgia Payday Loan Laws and Regulations

Find out if short-term Online Payday Loans in Georgia are legal and what amounts, interest rates, and repayment terms are set by the state's Legislation.

Legal Payday Loans Online for Georgia residents Apply online

Georgia Payday loans Rates and Terms

Legal Status

Legal Status

The status of a loan type according to the Federal laws and regulations. What concerns Payday Loans some states consider them legal, some – illegal and some restrict them in terms of amounts and interest rates.

Available (with some restrictions)
Maximum APR

Maximum APR

The maximum percentage allowed that actually represents annual cost of your loan. The APR is based on several things, including the amount you borrow, the interest rate and costs you’re being charged, and the length of your loan.


Though you must have heard that traditional Payday Loans are restricted in Georgia, you may find other options to get instant cash advance permitted by Georgia laws. Study the state's rules and regulations concerning short-term loans in Georgia. Find available alternatives.

Table of Contents:

Are Payday Loans legal in Georgia?

Why are Payday Loans illegal in Georgia?

Georgia Payday Loans Laws

Georgia Payday Loans online laws

Does Georgia law allow Payday Loans for bad credit borrowers?

Georgia Payday Loans news  - latest changes

Georgia Payday Loans historical background

Georgia Payday Loan alternatives

Are Payday Loans Legal in Georgia?

Short-term Payday Loans in Georgia are Available (with some restrictions) imposed by Ga. Code Ann. §§ 16-17-1 et seq..

Georgia's Payday Loan Law.pdf

The Payday Lending legislation covers all the parts of the process concerning:

  • Payday Loan amounts
  • Payday Loan repayment terms
  • Payday Loan online direct lenders
  • Payday Loan stores near you
  • Payday Loan interest rates and other fees
  • Payday Loan collecting practices
  • Payday Loan default penalties
  • The number of outstanding Payday Loans as well as a cooling-off period in-between etc.

The main Payday Loan eligibility criteria that the residents of Ga. Code Ann. §§ 16-17-1 et seq. must meet are:

For other details and information on Payday Loans in Georgia contact The Consumer Interest Section of the Georgia Attorney General’s Office, Two Martin Luther King, Jr. Drive West Tower, Suite 704 Atlanta GA 30334, Phone: (404) 656-2070 , Fax: (404) 657-8542.

Why are Payday Loans illegal in Georgia? 

The Government considers Payday Loans too expensive and often associated with lenders' predatory practices. That's why in Georgia Payday Loans were legal only till 2010 when 36% APR cap was set. It caused most lenders to stop issuing short-term small-dollar loans as it became not profitable. Still, there still exist some banks and online companies offering similar types of cash advance suitable to cover any unexpected emergencies.

Georgia Watch Payday Lending Report.pdf

A vibrant consumer loan market already exists in Georgia, where banks, credit unions, consumer finance companies, and other financial institutions offer responsible credit. These nearly 1,000 storefronts are located throughout almost every Georgia county, and a majority are locally owned. This is in stark contrast to the typical state’s payday loan market, which is dominated by a handful of out-of-state companies. Consumer finance companies are a significant and growing source of small-dollar loans, with $932 million in loan volume in 2005. Over half of these loans (56 percent) are for $600 or less.

Georgia Payday Loan laws 

Georgia residents who would like to apply for a Payday Loan online as well as in-store must meet the following eligibility criteria:

  • Georgia residence
  • age over 18
  • bank account
  • stable income

Besides, it's necessary to keep in mind that even if you qualify for a loan it doesn't mean you get one. 

However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for an online Payday Loan in Georgia.

The Georgia Industrial Loan Act requires state licensing and registration and imposes strict usury limits on small loans.  There are certain fines and criminal penalties for people making small loans at illegal rates of interest.  Besides, the law authorizes misdemeanor charges against violators, as well as fines of up to $5,000 per violation and a possible jail sentence of 1 year.

If you haven't succeeded in finding the necessary cash advance, there are always other options to receive the necessary funds in Georgia: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.

Georgia Payday Loans online laws 

Cash advances (payday loans) from both storefront and online lenders are restricted by 10.00% APR usuary cap imposed by Ga. Code Ann. §§ 16-17-1 et seq.. It also concerns online lenders which must operate in accordance with all relevant state and federal laws. Otherwise, they may be liable to The Consumer Interest Section of the Georgia Attorney General’s Office, Two Martin Luther King, Jr. Drive West Tower, Suite 704 Atlanta GA 30334, Phone: (404) 656-2070 , Fax: (404) 657-8542 for law violations. 

The law obligates Georgia Payday Loan lenders to provide you with a written disclosure of all the rates and fees in the understandable language. You should read them carefully and if you agree acknowledge the notification by signing the contract.

Does Georgia law allow Payday Loans for bad credit borrowers? 

The average credit score in Georgia is 654, placing it in the fair range. But it doesn't mean that those who have a worse credit can't apply for the necessary cash advance in Georgia. 

  • First of all, there're some companies in Georgia providing similar to Payday loans services to borrowers with both good and bad credit score.
  • Secondly, you can always find a cosigner to increase your chances of being approved for Online Payday Loans.
  • Find out how to improve your credit score and do your best to do it fast. 
  • Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.

Compare top legit Payday Lenders in Georgia:

Georgia Payday Loans news  - latest changes

Payday loans of $3,000 or less in Georgia are void if the lender has no license.

Western Sky agreed in 2017 to pay Georgians $23 million in restitution and forgive all $17 million it had in outstanding loans in the state. Western Sky’s loans ranged from $850 to $10,000, but most were for $2,600. Reyes’ class-action suit said a customer who borrowed $2,600 would pay $13,840 over a 47-month payment plan.

Reyes’ lawyers said on Friday she wasn’t available for comment.

Georgia Payday Loans historical background 

The history of Payday Loans in Georgia
1955 Payday Loans were banned limiting the rates and requiring lenders to get licenses.
2004 The Georgia Payday Lending Act was passed which made lenders regulations even stricter and punishment for violating laws more severe.

Georgia Payday Loan alternatives 

If you're looking for instant cash advance in Georgia but not a Payday Loan, consider other alternative ways to get the necessary funds:

  • Apply for a Georgia Installment Loan - $1000 - $5000 cash advance repaid over several months or years in equal installments.
  • Take out a Car Title Loan in Georgia if you own a vehicle to use as collateral.
  • Sell some of your valuable stuff online or at a pawn shop.
  • Apply for Georgia Tribal loans. Tribal lenders can avoid the state's caps and limits as they operate outside the state regulations. 
  • Consider borrowing online Georgia personal loans from a bank or credit union. U.S. Bank, the fifth-largest bank nationally, is lending up to $1,000 to cash-strapped consumers through its Simple Loan program.
  • Qualify for one of the Federal or Georgia government assistance programs: Low Income Energy Assistance Program (LIEAP), Georgia Health Care Cost Containment System (AHCCCS), Supplemental Nutrition Assistance Program (SNAP), The Emergency Food Assistance Program (TEFAP), Commodity Senior Food Program (CSFP), Congregate and Home Delivered Meals, Cash Assistance, Child Care Assistance.

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