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What Texas law allows
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Payday loans[1][2] | Allowed | No numeric cap | Not set by statute | Not set by statute | Credit Access Business | Tex. Fin. Code Chapter 393, Subchapter G |
| 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
Payday loans
- Rate cap
- Texas does not cap payday loan APR/fees by statute in the way most states do. Instead, payday loans ('deferred presentment transactions') are arranged by state-licensed Credit Access Businesses (CABs) that connect consumers with third-party lenders; the CAB charges its own fee for arranging or backing the loan, which is not subject to Chapter 342's or Chapter 393's interest caps because the CAB itself is not the lender. Consumer groups report effective costs in Texas as among the highest in the country as a result.
- Fees
- No statutory fee cap found on CAB fees; CABs must provide the Finance Commission's prescribed consumer disclosure of all fees and total repayment amount before the consumer signs, and consumers may cancel a payday loan by the close of the next business day without penalty.
- License
- Credit Access Business (CAB) license/registration under Tex. Fin. Code Chapter 393, Subchapter G (Sections 393.601 et seq.), OCCC; each CAB location also pays an annual assessment fee (Section 393.628) funding financial education.
Full detail for every loan type: Texas lending laws.
Help in Texas
Money snapshot for Texas
Other options in Texas
Worth checking whatever your credit: these can cost less than a high-rate loan.
- Emergency loans in Texas: allowed under Texas law; see its limits and license rules.
- Installment loans in Texas: allowed under Texas law; see its limits and license rules.
- Personal loans in Texas: allowed under Texas law; see its limits and license rules.
- Title loans in Texas: allowed under Texas 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 Texas.
Payday loans in nearby states
- OklahomaNot allowed Not allowed
- New MexicoNot allowed Not allowed
- LouisianaAllowed Fee cap
- ArkansasNot allowed Not allowed
- KansasAllowed Fee cap
Sources
- Justia. Tex. Fin. Code Chapter 393, Subchapter G. Retrieved September 23, 2026.
- occc.texas.gov. Texas Office of Consumer Credit Commissioner (OCCC). Retrieved September 23, 2026.
- National Low Income Housing Coalition. Out of Reach 2026: Texas. 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
APRs vary by lender and state in Texas. Each lender sets its own rates and terms and must show you the APR before you sign.
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- Questions about a lender licensed in Texas? Contact the Texas Office of Consumer Credit Commissioner (OCCC) or file a state complaint.
- You can submit a complaint about any lender to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.