In 1997, legislation was passed that allowed payday lending in the state of North Carolina, but the state government in 2001 make this loan illegal. Although the North Carolina Payday Loans are illegal but still the state is still fighting to enforce the law. Many banks which were partner to payday companies have opted out. The Center for Responsible Lending, a North Carolina nonprofit works to curb predatory lending. A small loan interest rate cap of 36% per year is applicable. Payday lenders can impose a 15% fee on a maximum loan sum of $300. The state's laws do not specify how many outstanding loans a borrower can have at one time.

North Carolina Payday Loans can be applied online. Payday loans are available online from the lenders who work from outside of this state. At present, online payday loans are available to the residents of North Carolina. The effective annual percentage interest rate on the average 12-day loan is 532%, well above the North Carolina small loan cap of 36%.