The Washington payday loan limit is a dual test: you can borrow up to $700, but never more than 30% of your gross monthly income. The lender applies whichever figure is smaller, a rule set in RCW 31.45.073.
Quick answer: In Washington your payday loan cannot exceed $700 or 30% of your gross monthly income, whichever is lower. So if you earn $2,000 a month, your cap is $600, not $700.
How the calculation works
- Earn $3,000/month gross: 30% is $900, so the $700 hard cap applies.
- Earn $2,000/month gross: 30% is $600, so your limit is $600.
- Earn $1,500/month gross: 30% is $450, so your limit is $450.
The cap covers all payday loans you hold at once, not per lender.
Why the cap exists
Tying the limit to income is designed to stop a loan from swallowing an entire paycheck, a real concern in a high-rent metro like Seattle. If you need more than the cap allows, a credit-union small loan or installment loan is usually far cheaper.
FAQ
Does the $700 include fees?
No. The $700 is the principal amount advanced; the 15%/10% fee is added on top.
Is the cap per lender or total?
It is a total across all payday loans you have open at the same time in Washington.
What income counts?
Gross (pre-tax) monthly income, which the lender may verify with pay documentation.
This article is educational and is not financial or legal advice. Loan laws change; always confirm the current rules and verify that any lender is licensed with the Washington Department of Financial Institutions (DFI) before you borrow.