In South Carolina, a company may charge more than 12% a year on a consumer installment loan only if the state licenses it as a supervised lender. On loans above $600, the law sets no single APR ceiling. The lender charges the rate it has filed and posted with the state.

This matters if you are thinking about a small loan to cover a repair or moving costs while a mortgage is in process. The license tells you whether the loan is legal. The rate schedule tells you what it can cost. Everything below comes from the South Carolina Code and the state regulator, as published in September 2026.

How South Carolina sorts lenders

The governing law is the Consumer Protection Code, Title 37. It defines a consumer loan as one made to an individual, for personal or household use, with a principal of $25,000 or less.

A lender that charges 12% a year or less needs no special license. Above 12%, the loan becomes a "supervised loan," and the lender must be licensed by the Consumer Finance Division of the State Board of Financial Institutions. Applications go through the Nationwide Multi-State Licensing System (NMLS). An online lender needs a separate license for each website it uses to make loans or take electronic payments.

The rates allowed depend on loan size. On advances up to $600, the lender is held to the Consumer Finance Law schedule in Title 34, Chapter 29. Above $600, Section 37-3-201 lets a supervised lender charge any rate it files and posts, or a flat 18% a year on the unpaid principal.

The general usury law does not close that gap. The 6% default rate applies only when there is no written agreement, and a written contract may set any rate unless other law restricts it.

The figures written into the statute

For licensed consumer finance companies making loans of $7,500 or less, Title 34, Chapter 29 sets tiered charges. The "per $100" rates apply to each slice of the loan in turn, as the statute states them.

Loan size Charge cap Initial charge Longest term
Up to $150 $2.50 per month 7% or $56, whichever is less 24.5 months
First $600 of a $151 to $2,000 loan $25 per $100 7% or $56, once per 3 months 24.5 months up to $1,000
$601 to $1,000 portion $18 per $100 Same 24.5 months
$1,001 to $2,000 portion $12 per $100 Same 36.5 months to $1,500; 48.5 to $2,000
$2,001 to $7,500 $9 per $100 5% or $200, once per 12 months 60.5 months

Payments must be substantially equal monthly installments of at least $10. Finance charges cannot be taken out in advance. The late charge is 5 cents per dollar that is 10 or more days overdue, with a $5 minimum.

DebtHammer, a consumer finance guide, reports that many short-term lenders moved to supervised lender licenses after 2009, when the state limited borrowers to one $550 payday loan at a time.

Not a payday loan, and not always a legal one

A payday loan is a separate product. According to South Carolina Appleseed, it is capped at $550 with fees of $15 per $100, which works out to roughly 391% APR on a two-week loan.

An unlicensed lender is another matter. Making these loans without a state license is prohibited. DebtHammer says unlicensed tribal lenders cannot enforce their loans in South Carolina courts, though sovereignty claims complicate this. Our sources do not address bank-partnership lending in the state.

Two Senate bills, Bill 488 (ability-to-repay checks, fewer than three renewals in 180 days) and Bill 379 (repealing payday lending), were still in committee as of late September 2026. Neither is law yet. The figures here are South Carolina's alone. A borrower across the line in Georgia faces a different statute.

Before you borrow, and before underwriting sees it

First, look up the lender's license through the Consumer Finance Division (803-734-2020). Our sources do not document credit union alternative loans or named state assistance programs, so ask your own credit union directly. Appleseed points struggling borrowers to legal aid and credit counseling.

If you are under contract on a home, expect the underwriter to see this loan. The deposit and the monthly debits will show on your bank statements, and the underwriter may ask for a letter of explanation. The monthly payment counts in your debt-to-income ratio. Whether paying the loan off before you apply changes how it is counted depends on your lender, so ask your loan officer before you borrow, not after.