Title Loans in Hawaii

Living in Hawaii is expensive, and when a car repair or a rent increase lands at the wrong time, it’s natural to look at the vehicle in the driveway as a source of cash. But if you’re researching title loans in Hawaii, you’ll find that the state’s lending laws leave very little room for them. In this guide from Auto Cash Title Loans, we explain Hawaii’s interest rate limits, the 2021 law that replaced payday lending with small installment loans, and the safer options available across the islands.

Are title loans legal in Hawaii?

Not in the high-cost form sold in other states. Hawaii has no statute that authorizes car title lending. Instead, vehicle-secured consumer loans are subject to the state’s general usury law, Hawaii Revised Statutes Chapter 478, and to the licensing rules that apply to nonbank lenders. Those limits are far below the triple-digit APRs that typical title loans charge.

A bank, credit union or licensed lender can still make an ordinary loan secured by a vehicle within the legal limits. Because only that low-cost version is possible, we classify Hawaii as restricted.

The governing law: Hawaii’s rate limits

Several laws work together to keep title lending out of Hawaii:

• HRS 478-4 (usury): for consumer credit transactions, a written contract may generally provide for simple interest of no more than 12% a year. The statute sets a higher limit of 24% a year for lenders regulated under HRS Chapter 412, the state’s financial institutions law. Check the current statute text for exceptions before relying on these figures.
• Licensing: according to the Division of Financial Institutions (DFI), a nondepository lender with a Hawaii presence may need a license if it intends to charge more than 12% a year, unless an exemption applies.
• HRS Chapter 480J (installment loans): created by Act 56 of 2021, this law lets licensed installment lenders make loans of up to $1,500 at no more than 36% interest a year, with repayment terms of up to 12 months. It also states that a consumer’s repayment obligations may not be secured by a lien on any real or personal property, which rules out using your car title as collateral for these loans.

The same 2021 law repealed Hawaii’s payday (deferred deposit) lending framework. DFI began licensing installment lenders on January 1, 2022. A 2025 bill proposed further changes to Chapter 480J; check DFI’s website for the current rules.

Why title lenders don’t operate here

The economics behind title loans in Hawaii simply don’t add up for lenders. Title lenders rely on short terms and high monthly fees. In Hawaii, the general usury limits leave no room for that pricing, and the one higher-rate small-dollar product, the Chapter 480J installment loan, can’t be secured by a vehicle. As a result, you generally won’t find licensed title lenders operating in the state.

That gap can attract online operators who ignore state law. Remember that the law that matters is the law where you live. A lender that doesn’t hold the license Hawaii requires, or that charges more than the state allows, is a lender to avoid.

Legitimate alternatives in Hawaii

Hawaii residents have several lower-cost options. Our full guide to title loan alternatives explains each in more depth.

• Credit union Payday Alternative Loans (PALs): federal credit unions may offer PALs from $200 to $2,000 with APRs capped at 28% and an application fee of no more than $20. Hawaii has a large network of local credit unions.
• Licensed installment lenders: Chapter 480J lenders can offer unsecured loans of up to $1,500 at no more than 36% interest a year, plus permitted fees, with no car title required.
• Bank and credit union personal loans: if you’d like to use your car as collateral, a regulated lender will usually charge a much lower rate.
• Community help: Aloha United Way’s 211 line, county assistance offices and utility hardship programs can help with rent, power bills or emergency repairs.

See how a credit union loan compares with a title loan on total cost.

How to spot illegal or out-of-state title lenders

If an online company offers you a car title loan while you’re living in Hawaii, be cautious. Red flags include:

• No mention of a Hawaii DFI license, or a license from another state only.
• Rates described per month, or an APR far above Hawaii’s limits.
• Requests to ship your title to the mainland or install a GPS tracker.
• Claims that tribal, offshore or another state’s law overrides Hawaii’s.
• Pressure to sign immediately or to roll over the loan.

Read our guide on how to spot title loan scams, review your borrower rights, and report unlicensed lenders to DFI. For a wider view, our list of states where title loans are illegal shows how Hawaii compares nationally.

Title loans in Hawaii’s major cities

Hawaii’s usury law and its Chapter 480J installment loan rules are state law, so they apply in exactly the same way in Honolulu, Hilo and Kahului. No county or city authorizes title lending. On every island, the only lawful way to borrow against a car is an ordinary loan within the state’s limits, usually from a bank or credit union.

• Honolulu: Most of the state’s population lives on Oahu, and the area includes Joint Base Pearl Harbor-Hickam and Schofield Barracks. The federal Military Lending Act caps covered credit, including vehicle title loans, at a 36% military APR for active-duty service members and their dependents, alongside Hawaii’s own limits.
• Kailua and Kaneohe: Marine Corps Base Hawaii is on the windward side, so the same military protection applies to many households here. Base and credit union financial counselors can help you compare options before you borrow against a vehicle.
• Pearl City and Kapolei: Commuters on Oahu’s west and central side often depend on a car to get to work, which makes a lien held by an unlicensed lender especially risky. Ask any lender for its DFI license before you share your title.
• Hilo: On the Big Island, ads for “online title loans” come from companies far away. A lender that asks you to ship your title to the mainland is not offering a product Hawaii law allows.
• Kahului and Wailuku: On Maui, as on the other islands, Chapter 480J installment loans of up to $1,500 can’t be secured by your car. Local credit unions, Aloha United Way’s 211 line and county assistance programs are the safer places to start.

Whichever island you live on, a high-APR loan secured by your car title would exceed Hawaii’s limits.

Frequently asked questions

Can I get a title loan online in Hawaii?

You may see ads, but a high-rate title loan to a Hawaii resident would generally exceed the state’s usury limits. Licensed Chapter 480J installment loans can’t be secured by your car.

Are payday loans still legal in Hawaii?

No. Act 56 of 2021 repealed the payday lending law and replaced it with licensed installment loans of up to $1,500, which DFI began licensing on January 1, 2022.

What is the interest rate limit for consumer loans in Hawaii?

Under HRS 478-4, a written consumer credit contract generally may not exceed 12% simple interest a year, with a higher 24% limit for lenders regulated under Chapter 412. Chapter 480J installment loans have their own 36% annual cap. Confirm current rules with DFI.

Can a bank or credit union lend against my car in Hawaii?

Yes. Vehicle-secured loans from banks and credit unions are common and are typically priced far below title-loan rates, with longer repayment periods.

Who regulates lenders in Hawaii?

The Division of Financial Institutions, part of the Department of Commerce and Consumer Affairs, licenses installment lenders and other nondepository lenders. Note that DFI says it does not administer or interpret Chapter 478, the usury law itself.

Sources

• Hawaii DFI: 2021 New Law, Small Dollar Loans / Installment Loans
• Hawaii State Legislature: HRS 478-4
• Hawaii DFI: Fact Sheet
• www.fdic.gov

Last reviewed: October 2026.