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Personal loans in Texas

Personal loans for bad credit in Texas

Personal loans are allowed in Texas from state-licensed lenders (Regulated Lender License, Texas Finance Code Chapter 342, issued by the Office of...). Here are the limits Texas law sets, what a typical loan can cost, and where to get free help if you need it.

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Part of the Texas guide

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What people use personal loans for

A personal loan is a lump sum repaid in fixed monthly payments. People use one for a larger cost they want to spread out, such as a car repair, a move, medical bills or several higher-rate debts rolled into one payment. The examples below show what larger and smaller amounts can cost within Texas limits.

What personal 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
$3,000
Annual percentage rate (APR)
21.1%
Repayment
12 monthly payments
Payment
$279.49
Finance charge
$353.88
Total of payments
$3,353.88

Example: a $3,000 installment loan at 21.1% APR repaid in 12 monthly payments of $279.49 costs $3,353.88 in total, including a finance charge of $353.88. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

Representative example

Amount borrowed
$1,000
Annual percentage rate (APR)
27%
Repayment
12 monthly payments
Payment
$96.02
Finance charge
$152.24
Total of payments
$1,152.24

Example: a $1,000 installment loan at 27% APR repaid in 12 monthly payments of $96.02 costs $1,152.24 in total, including a finance charge of $152.24. 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 Texas law allows

Personal loans in Texas
ProductStatusAPR capAmountTermLicenseLaw
Installment and personal loans[1][2][3][4] Allowed Tiered cap Not set by statute Not set by statute Regulated Lender License, Texas Finance Code Chapter 342, issued by the Office of... Tex. Fin. Code Chapter 342, Subchapter E
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
Tex. Fin. Code 342.201(e): for loans not secured by real property, 30% per year on the part of the cash advance up to the $500 reference-base amount, 24% on the part above that up to the $1,050 reference-base amount, and 18% on the part above that up to the $2,500 reference-base amount; reference-base amounts are adjusted periodically by the OCCC (current bracket bulletin dated 02-04-2026). Alternatively, 342.201(d) permits the Chapter 303 optional ceiling. Single-payment loans follow 342.202.
License
Regulated Lender License, Texas Finance Code Chapter 342, issued by the Office of Consumer Credit Commissioner (OCCC).

Full detail for every loan type: Texas lending laws.

Money snapshot for Texas

Texas household data
MeasureValueYear
Fair market rent, 2 bedroom (monthly)[5]$1,557FY2026
Population[6]31,290,8312024
Unemployment rate[7]4.4%2026-08

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.
  • Payday 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.

See every loan type Texas law allows.

Personal loans in nearby states

Sources

  1. occc.texas.gov. Retrieved September 23, 2026.
  2. occc.texas.gov/industry/cab/licensing-forms. Retrieved September 23, 2026.
  3. statutes.capitol.texas.gov. Tex. Fin. Code Chapter 342, Subchapter E. Retrieved September 23, 2026.
  4. occc.texas.gov. Texas Office of Consumer Credit Commissioner (OCCC). Retrieved September 23, 2026.
  5. National Low Income Housing Coalition. Out of Reach 2026: Texas. Retrieved September 23, 2026.
  6. U.S. Census Bureau, Population Division. Vintage 2024 National and State Population Estimates. Retrieved September 23, 2026.
  7. 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 Texas: APRs from 5.99% to 30%, where the state APR cap is 30% 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 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.