South Carolina installment loan laws live in Title 37, the Consumer Protection Code, not the payday act. Companies that make consumer loans with an annual percentage rate above 12% and aren’t secured by real estate must be licensed as consumer finance companies by the state.
Quick answer: Installment loans in South Carolina are made by supervised or consumer finance lenders under Title 37, the Consumer Protection Code. Lenders charging over 12% APR must be licensed by the Board of Financial Institutions.
Why installment loans can be safer
- You repay in scheduled payments over months, not one lump sum.
- Predictable installments are easier to fit into a budget.
- Licensed lenders are supervised and examined by the state.
Licensing and supervision
The Board of Financial Institutions’ Consumer Finance Division licenses and examines these lenders. You can confirm a company is licensed before you borrow, which is a simple way to avoid unlicensed online operators.
Reading the terms
Focus on the APR, the total of payments, and any prepayment terms. A licensed installment loan with a clear amortization schedule is usually cheaper over time than repeatedly renewing short-term credit.
FAQ
What makes a lender ‘supervised’?
Charging above the state’s base rate threshold (12% APR) generally requires a supervised or consumer finance license.
Are installment loans capped at 15% like payday?
No. They follow Title 37 rather than the payday act, so terms and disclosures differ.
How do I check a lender’s license?
Verify through the Board of Financial Institutions’ Consumer Finance Division.
This article is for educational purposes only and is not financial or legal advice. Loan laws change — before you borrow, verify the lender is licensed with the South Carolina Board of Financial Institutions, Consumer Finance Division, and compare cheaper options first.