What a loan can cost in Arkansas
Examples at an illustrative rate, never above Arkansas's cap for the amount. They are not quotes.
Representative example
- Amount borrowed
- $500
- Annual percentage rate (APR)
- 17%
- Repayment
- 12 monthly payments
- Payment
- $45.60
- Finance charge
- $47.20
- Total of payments
- $547.20
Example: a $500 installment loan at 17% APR repaid in 12 monthly payments of $45.60 costs $547.20 in total, including a finance charge of $47.20. 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)
- 17%
- Repayment
- 12 monthly payments
- Payment
- $91.20
- Finance charge
- $94.40
- Total of payments
- $1,094.40
Example: a $1,000 installment loan at 17% APR repaid in 12 monthly payments of $91.20 costs $1,094.40 in total, including a finance charge of $94.40. 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)
- 17%
- Repayment
- 12 monthly payments
- Payment
- $273.61
- Finance charge
- $283.32
- Total of payments
- $3,283.32
Example: a $3,000 installment loan at 17% APR repaid in 12 monthly payments of $273.61 costs $3,283.32 in total, including a finance charge of $283.32. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Resources in Arkansas
Free and low-cost help in Arkansas, each with its official link and the date we checked it.
Lending regulator and complaints
Arkansas State Bank Department (licensed lenders); Arkansas Attorney General (usury enforcement) licenses lenders in Arkansas.
Check a lender's license File a complaint
banking.arkansas.gov, arkansasag.gov Checked September 23, 2026
Attorney general consumer protection
Takes complaints about scams and unfair debt collection.
arkansasag.gov Checked September 23, 2026
211
Help with rent, utilities, food and other urgent bills.
arkansas211.org Checked September 23, 2026
Legal aid
Free civil legal help if your income is low; income limits vary.
arlegalaid.org Checked September 23, 2026
Nonprofit credit counseling
Help with a budget or a debt management plan.
nfcc.org Checked September 23, 2026
Benefits portal
Check whether you qualify for food, cash or other benefits in Arkansas.
access.arkansas.gov Checked September 23, 2026
Federal complaints
Complaints about any lender, to the Consumer Financial Protection Bureau.
Submit a complaint to the CFPB
consumerfinance.gov Checked September 23, 2026 Available in Spanish
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). 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.
- 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.
- Credit-builder loans: a small loan held in savings while you pay it off, which can help build a payment history.
- Secured credit cards: a card backed by a deposit you make, which can help build credit when you pay on time.
The rules lenders follow in Arkansas
Each rule links to its source. How we research state rules.
Allowed in Arkansas: installment and personal loans. Not allowed: title loans and payday loans.
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Installment and personal loans[1][2][3][4] | Allowed | 17% APR | Not set by statute | Not set by statute | General consumer/installment lenders may need registration | Ark. Const. Amend. 89, Section 3; Ark. Code Section 4-57-101 et seq. |
| Title loans[1][5] | Not allowed | Not allowed | Not set by statute | Not set by statute | Not applicable | Ark. Const. Amend. 89, Section 3 |
| Payday loans[6][1][5] | Not allowed | Not allowed | Not set by statute | Not set by statute | Not applicable | Ark. Const. Amend. 89; former Check-Cashers Act held unconstitutional in 2008 |
| 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.
Rate, fee and license rules in Arkansas
Installment and personal loans
- Rate cap
- Arkansas Constitution, Amendment 89 (codified via Ark. Code Section 4-57-104) caps interest on any consumer loan or credit sale at 17% per year (5 percentage points above the Federal Reserve discount rate, capped at 17%). Any consumer installment loan must comply with this constitutional ceiling; there is no separate higher-rate small loan or consumer lender carve-out.
- Fees
- Rates or charges above 17% APR render the contract void as to both principal and interest under the constitutional usury provision.
- License
- General consumer/installment lenders may need registration; no specialized high-rate small loan license exists because rates above 17% are constitutionally void.
Title loans
- Rate cap
- No title loan statute exists; any title-secured consumer loan is still subject to the 17% constitutional usury cap, which makes the standard title-loan business model (typically 100%+ APR) unlawful in the state.
- License
- Not applicable; car title lending at market rates is not a licensable product in Arkansas.
Payday loans
- Rate cap
- No payday lending carve-out exists. The 2008 Arkansas Supreme Court decision in McGhee v. Arkansas State Board of Collection Agencies held the 1999 Check-Cashers' Act unconstitutional under the state's 17% usury cap, ending licensed payday lending in the state.
- License
- Not applicable; deferred presentment/payday lending is not a licensable product in Arkansas.
Rent and jobs in Arkansas
Typical rent and the jobless rate, to weigh before a loan payment.
Guides for Arkansas borrowers
Check your options in Arkansas
Arkansas questions
Does Arkansas law allow payday loans?
Arkansas law does not allow payday loans. Source: Ark. Const. Amend. 89; former Check-Cashers Act held unconstitutional in 2008.
What is the most a lender can charge in Arkansas?
By loan type in Arkansas: Installment and personal loans: 17% APR. Title loans: Not allowed. Payday loans: Not allowed.
Where can I file a complaint about a lender in Arkansas?
You can file a complaint with Arkansas State Bank Department (licensed lenders); Arkansas Attorney General (usury enforcement), and you can also submit one to the Consumer Financial Protection Bureau. Both links are under Resources in Arkansas on this page.
How do I check a lender's license in Arkansas?
Arkansas State Bank Department (licensed lenders); Arkansas Attorney General (usury enforcement) licenses lenders in Arkansas. Use the license link under Resources in Arkansas on this page to check a lender before you share your information.
Is there free help paying bills in Arkansas?
Yes. Resources in Arkansas on this page lists free help, including 211, legal aid, nonprofit credit counseling and benefits portal.
Nearby states
- MississippiAllowed See the rules
- MissouriAllowedNo rate limit in state law No rate limit
- OklahomaAllowed Limit depends on loan size
- LouisianaAllowed Limit depends on loan size
- TennesseeAllowed 24% APR
Sources
- Justia. Ark. Const. Amend. 89, Section 3. Retrieved September 23, 2026.
- csbs.org/2020-02/Arkansas_Final. Retrieved September 23, 2026.
- findlaw.com/state/arkansas-law/arkansas-interest-rates-laws.html. Retrieved September 23, 2026.
- banking.arkansas.gov. Arkansas Attorney General (usury enforcement); Arkansas State Bank Department for licensed lenders. Retrieved September 23, 2026.
- arkansasag.gov. Arkansas Attorney General. Retrieved September 23, 2026.
- researchgate.net/publication/305426419_The_History_of_Payday_Lending_in_Arkansas. Retrieved September 23, 2026.
- National Low Income Housing Coalition. Out of Reach 2026: Arkansas. 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 Arkansas. 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 Arkansas? Contact the Arkansas Attorney General (usury enforcement); Arkansas State Bank Department for licensed lenders or file a state complaint.
- You can submit a complaint about any lender to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.