Payday loans are legal in South Carolina. The state caps them but does not ban them. Under the Deferred Presentment Services Act, a lender can advance up to $550 for up to 31 days and charge a fee of up to 15% of the amount advanced.

"Deferred presentment" is the legal term for the product. You write the lender a check, and the lender agrees to wait before cashing it. These rules are in force as of September 27, 2026. Two Senate bills would change them, and neither has left committee.

The limits written into state law

The governing law is S.C. Code Title 34, Chapter 39, § 34-39-110 et seq. The Consumer Finance Division of the South Carolina Board of Financial Institutions licenses and examines lenders. Every storefront needs its own license. Complaints go to a different agency, the SC Department of Consumer Affairs, at 803-734-4200.

Rule South Carolina limit Source
Maximum loan $550, not counting fees § 34-39-180(B)
Maximum fee 15% of principal: $82.50 on $550, so $632.50 owed § 34-39-180(E)
Cost as an APR About 391% on a two-week loan SC Appleseed
Term Up to 31 days. The statute sets no minimum; loans typically run 14 to 31 days § 34-39-180(A); SC Appleseed
Rollovers Prohibited § 34-39-180(F)
Loans at once One, checked against a statewide database before every loan § 34-39-175

The cap is set on the fee, not on an interest rate, for a reason. Section 34-39-250 says these fees are not treated as interest under the state's other lending laws. The general usury limits therefore never apply.

The law also blocks a quick reborrow. A lender cannot make you a new loan on the same business day you repay the last one.

If you can't repay on time

According to SC Appleseed's plain-language guide, you can ask for an Extended Payment Plan once every 12 months. It lets you repay in at least four equal installments. You also cannot be arrested, or threatened with arrest, over a bounced check tied to a payday loan.

Secondary sources disagree on two details. The first is when a mandatory two-day cooling-off period starts: Appleseed says after seven consecutive loans, and one industry reference says eight. The second is the cap on bounced-check fees: sources say $10 or $30. The statute text settles both.

Online lenders, and what to watch for

Our sources do not say how South Carolina treats online or tribal lenders lending into the state. They also do not cover credit union alternatives or state assistance programs, so we can't tell you which of those exist.

What the law does make clear is what a legal loan looks like. Walk away if you see any of these:

  • a loan above $550
  • a fee above 15%
  • an offer to roll the loan over
  • a lender that won't show you its state license

Two bills that stalled

S. 379 would end payday lending and repeal Chapter 39 entirely. S. 488 would require an ability-to-repay check and a 30-day wait between loans. Both were referred to committee in early 2025 and have not moved since. S. 379's own effective dates have already passed.

How a payday loan looks on a mortgage file

If you're closing on a house soon, the loan matters beyond its fee. Underwriters read your bank statements line by line. A payday deposit and the repayment debit will stand out, and they tend to prompt a request for a letter of explanation.

An open balance can also count as a debt when the lender works out your debt-to-income ratio. How your lender treats it is its own rule, so ask your loan officer directly.

The cleaner path is to repay any payday loan before you apply, and not to take a new one before closing.