Car Title Loans in Virginia

Title loans are legal in Virginia, but the Code of Virginia Title 6.2, Chapter 22, Motor Vehicle Title Loans (Va. Code secs. 6.2-2200 through 6.2-2227) limits what a lender may charge: interest at a simple annual rate not to exceed 36 percent; a monthly maintenance fee not exceeding the lesser of 8 percent of the originally contracted loan amount or $15; late charge per sec. 6.2-400 not exceeding $20. Loans Inc connects Virginia residents with participating independent lenders that offer this product. We are not a lender; the lender you are matched with decides whether to approve you and on what terms. This page explains what Virginia law allows, who enforces it, and what to check before you sign.

Are title loans legal in Virginia?

Yes, with a rate cap. The provisions that apply are Va. Code secs. 6.2-2200 through 6.2-2227; key sections 6.2-2201, 6.2-2215, 6.2-2215.1, 6.2-2216, 6.2-2217.

The operative language in the statute reads: “No person shall engage in the business of making motor vehicle title loans to residents of the Commonwealth or to any individuals in the Commonwealth”

Recent change: History notes on secs. 6.2-2200, 6.2-2201, 6.2-2215, 6.2-2215.1, 6.2-2216 and 6.2-2217 end with ‘2020, cc. 1215, 1258’; no 2023-2026 amendment seen. SCC Bureau of Financial Institutions 2023 Annual Report: ‘No motor vehicle title lenders were licensed in Virginia as of year-end 2023’ and ‘No applications were received for motor vehicle title lenders in 2023’; its table shows 0 licensees at year-end 2023 and 2022, 1 in 2021, 12 in 2020.

Who regulates title lenders in Virginia

Title lenders in Virginia are supervised by the Virginia State Corporation Commission, Bureau of Financial Institutions. You can check whether a lender holds a current license through the regulator’s license lookup. Complaints about a lender go to the regulator and can also be filed with the Consumer Financial Protection Bureau.

Rate caps and fees in Virginia

Sec. 6.2-2216: interest at a simple annual rate not to exceed 36 percent; a monthly maintenance fee not exceeding the lesser of 8 percent of the originally contracted loan amount or $15; late charge per sec. 6.2-400 not exceeding $20; deposit return fee up to $25; collection costs/damages capped at the original loan amount; repossession costs limited to 5 percent of the original loan amount.

Separately, federal law caps the Military Annual Percentage Rate at 36% for active-duty service members and their dependents on most consumer credit, including title loans (Military Lending Act, 32 CFR Part 232).

Rates, fees, and repayment terms are set by the lender you are matched with and vary by state. Before you sign, the lender will give you a full written disclosure of the APR, fees, payment schedule, and total cost. Loans Inc does not set or guarantee any loan terms.

What the Virginia cap means in dollars

Illustrative only. On a $1,000 loan for one month, the maximum finance charge allowed by Va. Code 6.2-2216 (36% per year plus a monthly maintenance fee of up to the lesser of 8% of the loan or $15) is about $30, plus a fee of up to $15, for a total repayment of about $1,045. Virginia requires a minimum term of six months, so a real loan would run at least six such periods, with interest on the declining balance. A lender may charge less than the maximum, and the written disclosure the lender gives you before you sign is the figure that counts. This is an illustration of a statutory ceiling, not an offer from any lender.

Loan terms in Virginia

Sec. 6.2-2215.1(2): ‘The minimum duration of the loan is six months and the maximum duration of the loan is 24 months’; minimum may be less than six months if the total monthly payment does not exceed the greater of 5 percent of verified gross monthly income or 6 percent of verified net monthly income; (4) precomputed loan payable in substantially equal installments; (5) rescission by 5 p.m. of the third business day. Sec. 6.2-2215: ‘a licensee shall not refinance, renew, or extend any title loan’ and no person may have more than one title loan outstanding from any licensee at the same time.

Repossession rules in Virginia

Sec. 6.2-2217: licensee must have sent written notice by first class mail at least 10 days prior to repossessing; ‘At any time prior to such sale, the licensee shall permit the borrower to redeem the motor vehicle by tendering cash or other good funds’; borrower ‘is entitled to receive all proceeds from such sale … in excess of the redemption amount’; ‘a licensee shall not seek or obtain a personal money judgment against a borrower for any amount owed … or any deficiency resulting after the sale’, except where the borrower impaired the security by intentional damage, concealment, undisclosed lien or unauthorized transfer.

A title loan is secured by your vehicle. If you do not repay according to the loan agreement, the lender may repossess your vehicle. Late or missed payments may be reported and may affect your credit. If you are struggling to pay, contact the lender before the due date; the options available to you are set by the loan agreement and Virginia law.

Your rights as a borrower in Virginia

Sec. 6.2-2215.1(3): written loan contract signed by borrower and licensee, dated the day of disbursement, copy to borrower, disclosing principal and total fees, each payment amount/date, number of payments and maturity date, vehicle make/model/year/VIN and fair market value per a recognized pricing guide, Bureau complaint contact, TILA disclosures, APR, 3-business-day rescission statement, statement that electronic payment is optional and revocable, and a 14-point bold warning on collateral, limited liability and surplus. Sec. 6.2-2215: no title loans to covered members of the armed forces or dependents; no power of attorney or waiver of rights; licensee must hold the title during the loan; borrower rights pamphlet required; contact with borrowers limited to enumerated purposes.

How title loans work in Virginia: requirements and process

Lenders in our network typically ask Virginia applicants for:

• A vehicle title in your name, free of other liens
• A government-issued photo ID
• Proof of income or ability to repay
• Proof of Virginia residence
• A vehicle inspection, often completed with photos

You apply once through our site; the lender you are matched with reviews the application and vehicle and makes the approval decision. Read how our matching service works and the difference between a direct lender, a broker, and a lead generator. In Virginia, ‘The total amount of the loan does not exceed $2,500’; sec. 6.2-2215: ‘A licensee shall not cause any person to be obligated to the licensee in any capacity at any time in the principal amount of. Many lenders in our network can fund approved loans as soon as the same business day. Timing depends on the lender’s approval, when you apply, document verification, and your bank’s processing.

Alternatives to a title loan in Virginia

Before you borrow against your car, compare lower-cost options available to Virginia residents. Federal credit unions can offer payday alternative loans with capped rates; use the NCUA credit union locator to find one near you. Dial 211 or visit 211.org for local emergency assistance programs. Nonprofit counselors listed by the National Foundation for Credit Counseling can help with a repayment plan. Our guide to title loan alternatives compares each option and when it costs less.

Frequently asked questions

Sources

Loans Inc is not a lender and does not make loans in any state. The information on this page is drawn from the sources listed below and is provided for general education. The lender you are matched with is responsible for complying with the laws of your state. Last reviewed 15 September 2026 by the Loans Inc Editorial Team. Next review due March 2027.