Where the Loan Amount Changes the Rules

The thresholds at a glance

The table lists the amount lines covered on this page. They change: the federal threshold is adjusted every year, and states amend their laws. Check the current rule for your state before you rely on it.

Truth in Lending: the $73,400 line

Regulation Z, which carries out the Truth in Lending Act, exempts consumer credit in which the amount of credit extended exceeds an annually adjusted threshold. The exemption does not apply to credit secured by real property or by a principal dwelling, or to private education loans. The threshold is $73,400 for 2026, up from $71,900 in 2025, under the adjustment published by the CFPB and the Federal Reserve on December 15, 2025.

A worked example: an unsecured personal loan of $70,000 made in 2026 is covered, so the lender must disclose the APR, finance charge and total of payments before you sign. An unsecured $75,000 loan is above the line, and federal law does not require those disclosures. A lender may still give them, and state law may still apply, but at this size ask for the APR and total of payments in writing. LendCedar explains how to read a Truth in Lending disclosure, and the $100,000 personal loan page covers the other questions at that size.

Rules that apply at almost every size

The Military Lending Act caps the cost of most consumer credit to active-duty servicemembers and their dependents at a 36% military annual percentage rate, which counts most fees. A $500 loan and a $50,000 loan are treated alike, but the rule excludes credit that is exempt from Regulation Z (32 CFR 232.3(f)(2)(iv)), so an unsecured loan above the $73,400 line for 2026 falls outside the cap. LendCedar covers military borrowers and veterans.

The Equal Credit Opportunity Act also applies whatever the amount. Its rules on how lenders treat your income, and the notice you get when an offer is denied or cut, are the same for $1,000 as for $40,000. Income for a personal loan covers the income rules.

Credit union PALs: $200 to $2,000

Federal credit unions may make payday alternative loans at up to 28% APR, while their other loans are held to 18% by an NCUA Board ceiling that runs through September 10, 2027. PAL I loans run from $200 to $1,000 over 1 to 6 months, after at least one month of membership. PAL II loans go up to $2,000 over 1 to 12 months, with no minimum amount and no required waiting period. As a worked example, $2,000 at 28% over 12 months costs $193.01 a month and $316.14 in interest. Minimum and maximum loan amounts compares the two.

California: the $2,500 and $10,000 lines

Under the California Financing Law, licensed lenders making consumer loans of at least $2,500 but less than $10,000 may not charge more than 36% a year plus the federal funds rate. With the Fed's target range at 3.75%–4.00% since September 16, 2026, that comes to roughly 40%. For loans of $5,000 or more in the band, administrative fees count toward the cap; above $2,500 and under $5,000, a fee of up to $75 may be charged on top.

• Loans from $2,500 to under $10,000 must have a scheduled term of at least 12 months.
• Loans from $3,000 to under $10,000 may run no longer than 60 months and 15 days (real-estate-secured loans of $5,000 or more excepted).
• Lenders may not charge a prepayment penalty on these consumer loans, except some secured by real estate.

Loans under $2,500 and loans of $10,000 or more fall outside this band and follow different rules, so asking for $9,900 or $10,000 from the same licensee can mean a different rate ceiling.

Florida and North Carolina: caps that step down with size

Florida's Consumer Finance Act covers loans of $25,000 or less. Under the 2026 Florida Statutes, a licensed lender may charge up to 36% a year on the first $10,000 of principal, 30% on the part between $10,000 and $20,000, and 24% on the part from $20,000 to $25,000, or a single APR that produces the same interest. A lender not authorized under the chapter or another statute may not charge more than 18% on loans of that size. On the starting balance, the tiers work out to a blended 34% for $15,000 and 31.2% for $25,000.

North Carolina's Consumer Finance Act lets licensees make installment loans of up to $25,000, repaid in substantially equal monthly payments over 12 to 96 months and not secured by real estate. For loans of $12,000 or less the cap is 33% on the first $4,000 of the balance, 24% on the next $4,000 and 18% on the rest; above $12,000, 18% on the whole balance. On the starting balance, a $12,000 loan can carry a blended 25%; a $12,500 loan is capped at 18%.

Using the thresholds when you size a loan

1. 1 Settle the amount first, with how much to borrow and the amount to request calculator if a fee comes out of the loan.
2. 2 Check whether that amount sits just above or below a line in your state. A slightly different amount can change the rate ceiling or the minimum term.
3. 3 Confirm the lender is licensed with your state regulator; LendCedar explains how to verify a lender.
4. 4 Above $73,400 unsecured, ask for the APR, finance charge and total of payments in writing before you sign.

Questions people ask