How installment loans work
An installment loan is repaid in equal payments over months, not in one payment on your next payday; the examples below stay within Missouri 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 Missouri law allows
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Installment and personal loans[1][2][3] | AllowedNo rate limit in state law | No rate limit | Not set by statute | At least 4 months | Consumer Installment Lender license | Mo. Rev. Stat. 408.510, 408.512, cross-referencing 408.100, 408.140, and 408.170 for rate/fee ceilings; consumer protections at... |
| Verified against the statute and regulator on September 23, 2026. Laws change; confirm with the regulator before you borrow. | ||||||
Bars place each APR cap on a 0 to 400% scale; the pin marks the cap. A striped bar means the statute sets no numeric cap.
The rules in full
Installment and personal loans
- Rate cap
- Consumer installment loans (at least four substantially equal installments over at least 120 days) carry interest and fees per 408.100, 408.140 and 408.170 (408.510). Section 408.100 permits interest "at rates agreed to by the parties," so there is no numeric APR ceiling.
- License
- Consumer Installment Lender license under Mo. Rev. Stat. 408.510-408.512, issued by the Missouri Division of Finance.
Full detail for every loan type: Missouri lending laws.
Help in Missouri
Rent and jobs in Missouri
Typical rent and the jobless rate, to weigh before a loan payment.
Other options in Missouri
Cheaper options to try first
Worth checking whatever your credit: these can cost less than a high-rate loan.
- Credit union payday alternative loans (PALs), capped at 28% APR under NCUA rules (12 CFR 701.21).
- Nonprofit credit counseling through the National Foundation for Credit Counseling.
- A payment plan from the company you owe, if you ask before you miss a payment.
- 211 for help with rent, utilities and food: call 211 or visit 211.org.
More cheaper options in Missouri.
Other loan types allowed in Missouri
- Personal loans in Missouri No rate limit in state law
- Emergency loans in Missouri No rate limit in state law
- Title loans in Missouri No rate limit in state law
- Payday loans in Missouri High-cost loan
Installment loans in nearby states
Sources
- finance.mo.gov. Missouri Division of Finance. Retrieved September 23, 2026.
- Justia. Mo. Rev. Stat. 408.510, 408.512, cross-referencing 408.100, 408.140, and 408.170 for rate/fee ceilings. Retrieved September 23, 2026.
- Justia. law.justia.com/codes/missouri/title-xxvi/chapter-408/section-408-512. Retrieved September 23, 2026.
- National Low Income Housing Coalition. Out of Reach 2026: Missouri. 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
APRs vary by lender and state in Missouri. Each lender sets its own rates and terms and must show you the APR before you sign.
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