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California Interest Rates

The following is the California law on basic interest charges for pawnshops as of January 1, 2002. The actual law can be found in California Financial Code Section 21200.5. The description of the law below has been rewritten in laymen’s terms. A 2.5% interest charge per month on the principle (loan amount) of the loan, including, but not more than $225. A 2% interest charge per month on a principle loan amount more than $225, including, but not more than $900. A 1% interest charge per month on a principle loan amount from $1,650 to $2,499.