How installment loans work
An installment loan is repaid in equal payments over months, not in one payment on your next payday, which can make a mid-size bill easier to budget. The examples below show how the amount changes the payment and total cost within Louisiana limits.
What installment loans can cost
These examples show how cost adds up. They are illustrative, not a quote. Your lender sets the actual rate and terms.
Representative example
- Amount borrowed
- $1,000
- Annual percentage rate (APR)
- 29.99%
- Repayment
- 12 monthly payments
- Payment
- $97.48
- Finance charge
- $169.76
- Total of payments
- $1,169.76
Example: a $1,000 installment loan at 29.99% APR repaid in 12 monthly payments of $97.48 costs $1,169.76 in total, including a finance charge of $169.76. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Representative example
- Amount borrowed
- $3,000
- Annual percentage rate (APR)
- 29.99%
- Repayment
- 12 monthly payments
- Payment
- $292.45
- Finance charge
- $509.40
- Total of payments
- $3,509.40
Example: a $3,000 installment loan at 29.99% APR repaid in 12 monthly payments of $292.45 costs $3,509.40 in total, including a finance charge of $509.40. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Representative example
- Amount borrowed
- $500
- Annual percentage rate (APR)
- 29.99%
- Repayment
- 12 monthly payments
- Payment
- $48.74
- Finance charge
- $84.88
- Total of payments
- $584.88
Example: a $500 installment loan at 29.99% APR repaid in 12 monthly payments of $48.74 costs $584.88 in total, including a finance charge of $84.88. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
What Louisiana law allows
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Installment and personal loans[1][2][3][4][5][6] | Allowed | Tiered cap | Not set by statute | Not set by statute | Licensed Lender license | La. R.S. 9:3510 et seq.; rate tiers at R.S. 9:3519; loan broker licensing at R.S. 9:3572.1 et seq.; 2026 Regular Session HB 545 and HB... |
| Verified against the statute and regulator on September 23, 2026. Laws change; confirm with the regulator before you borrow. | ||||||
The rules in full
Installment and personal loans
- Rate cap
- Tiered maximum loan finance charge under the Louisiana Consumer Credit Law: 36% per year on the unpaid principal up to $1,400; 27% per year on the portion from $1,400 to $4,000; 24% per year on the portion from $4,000 to $7,000; 21% per year on the portion above $7,000. Minimum finance charge of $15 (advances up to $200) or $25 (advances over $200) in lieu of other finance charges.
- Fees
- Minimum loan finance charge $15 or $25 depending on advance amount; origination fee up to $75 on a consumer loan or revolving loan account per 2026 HB 545 (Act, 2026 Regular Session).
- License
- Licensed Lender license (Louisiana Consumer Credit Law, La. R.S. 9:3510 et seq.), issued by the Office of Financial Institutions (OFI); separately, a Loan Broker license (R.S. 9:3572.1 et seq.) is required to broker consumer loans for compensation, which OFI and industry counsel treat as also covering lead-generation activity that solicits or offers to find lenders for consumer loans.
Full detail for every loan type: Louisiana lending laws.
Help in Louisiana
Money snapshot for Louisiana
Other options in Louisiana
Worth checking whatever your credit: these can cost less than a high-rate loan.
- Emergency loans in Louisiana: allowed under Louisiana law; see its limits and license rules.
- Payday loans in Louisiana: allowed under Louisiana law; see its limits and license rules.
- Personal loans in Louisiana: allowed under Louisiana law; see its limits and license rules.
- Title loans in Louisiana: allowed under Louisiana law; see its limits and license rules.
- Credit union payday alternative loans (PALs). Federal credit unions may offer small loans of up to $2,000 with terms of up to 12 months and an APR no higher than 28%, under NCUA rules (12 CFR 701.21). You usually need to be a member.
- Nonprofit credit counseling. A counselor accredited by the National Foundation for Credit Counseling can help you build a budget or a debt management plan.
- Ask your creditor for a payment plan. Utilities, hospitals and many lenders offer hardship or extended payment plans if you ask before you miss a payment.
- Local assistance. Call 211, or visit 211.org, for emergency help with rent, utilities and food in Louisiana.
Installment loans in nearby states
- MississippiAllowed See the rules
- ArkansasAllowed 17% APR
- AlabamaAllowed 36% APR (top tier)
- TexasAllowed Tiered cap
- TennesseeAllowed 24% APR
Sources
- ofi.la.gov. La. R.S. 9:3510 et seq.. Retrieved September 23, 2026.
- Justia. law.justia.com/codes/louisiana/revised-statutes/title-9/rs-9-3519. Retrieved September 23, 2026.
- Justia. law.justia.com/codes/louisiana/revised-statutes/title-9/rs-9-3572-2. Retrieved September 23, 2026.
- legis.la.gov/legis/ViewDocument.aspx. Retrieved September 23, 2026.
- legis.la.gov/legis/ViewDocument.aspx. Retrieved September 23, 2026.
- ofi.la.gov. Louisiana Office of Financial Institutions (OFI). Retrieved September 23, 2026.
- National Low Income Housing Coalition. Out of Reach 2026: Louisiana. Retrieved September 23, 2026.
- U.S. Census Bureau, Population Division. Vintage 2024 National and State Population Estimates. Retrieved September 23, 2026.
- U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.
Important disclosures
Illustrative range for installment loans in Louisiana: APRs from 5.99% to 35.99%, where the state APR cap is 36% at most and lower on larger loans. This range is not a quote; each lender sets its own rates. Your APR depends on your credit, income, state and the lender.
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- Questions about a lender licensed in Louisiana? Contact the Louisiana Office of Financial Institutions (OFI) or file a state complaint.
- You can submit a complaint about any lender to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.