What a loan can cost in New Mexico
Examples at an illustrative rate, never above New Mexico's cap for the amount. They are not quotes.
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.
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.
Resources in New Mexico
Free and low-cost help in New Mexico, each with its official link and the date we checked it.
Lending regulator and complaints
New Mexico Regulation and Licensing Department, Financial Institutions Division (FID) licenses lenders in New Mexico.
Check a lender's license File a complaint
rld.nm.gov Checked September 23, 2026
211
Help with rent, utilities, food and other urgent bills.
unitedwayenm.org Checked September 23, 2026
Legal aid
Free civil legal help if your income is low; income limits vary.
newmexicolegalaid.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 New Mexico.
yes.nm.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
More New Mexico resources appear here as we check each source.
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 New Mexico
Each rule links to its source. How we research state rules.
Allowed in New Mexico: 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 | 36% APR | Up to $10,000 | At least 4 months | Small Loan license | NMSA 1978, Small Loan Act of 1955; Bank Installment Loan Act of 1959, as amended by 2022 HB 132 and 2017 HB 347 |
| Title loans[1][5][4] | Not allowed | Not allowed | Not set by statute | Not set by statute | If a title-secured loan were made, it would need to comply with the Small Loan Act's 36% APR cap and 120-day minimum term, which is generally incompatible with the traditional short-duration title-loan structure | 2017 N.M. HB 347; 2022 N.M. HB 132 |
| Payday loans[1][2][5][4] | Not allowed | Not allowed | Not set by statute | Not set by statute | None | 2017 N.M. HB 347; 2022 N.M. HB 132 |
| 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 New Mexico
Installment and personal loans
- Rate cap
- Under 2022 House Bill 132 (effective January 1, 2023), the Small Loan Act of 1955 (SLA) and Bank Installment Loan Act of 1959 (BILA) were amended to cap the maximum APR at 36 percent, down from the prior 175% cap set by 2017 HB 347. The loan-amount ceiling under these Acts was raised from $5,000 to $10,000 as part of the same 2022 amendment. HB 132 also added anti-evasion ("true lender") provisions targeting bank-partnership models that try to hold a predominant economic interest in a loan to evade the cap.
- License
- Small Loan license under the New Mexico Small Loan Act of 1955 (or Bank Installment Loan Act of 1959 for state-chartered bank lenders), issued by the New Mexico Financial Institutions Division (FID), a division of the Regulation and Licensing Department.
Title loans
- License
- If a title-secured loan were made, it would need to comply with the Small Loan Act's 36% APR cap and 120-day minimum term, which is generally incompatible with the traditional short-duration title-loan structure.
Payday loans
- Rate cap
- New Mexico effectively eliminated traditional short-term payday loans via 2017 HB 347, which as of January 1, 2018 no longer permitted small-loan licensees to initiate new payday loans and imposed a 120-day minimum term / four-payment minimum on small loans generally, structurally excluding a standalone short-term payday product. The subsequent 2022 HB 132 (effective Jan 1, 2023) further lowered the applicable APR ceiling on the remaining small-loan product to 36%.
- Fees
- N/A; distinct payday product no longer authorized.
- License
- None; no separate payday loan license exists in New Mexico as of the 2017/2018 reform. Any short-term deferred-deposit product would need to comply with the Small Loan Act's 120-day minimum term and 36% APR cap instead, which as a practical matter eliminates the traditional payday-loan structure.
Rent and jobs in New Mexico
Typical rent and the jobless rate, to weigh before a loan payment.
Guides for New Mexico borrowers
Check your options in New Mexico
New Mexico questions
Does New Mexico law allow payday loans?
New Mexico law does not allow payday loans. Source: 2017 N.M. HB 347; 2022 N.M. HB 132.
What is the most a lender can charge in New Mexico?
By loan type in New Mexico: Installment and personal loans: 36% APR. Title loans: Not allowed. Payday loans: Not allowed.
Where can I file a complaint about a lender in New Mexico?
You can file a complaint with New Mexico Regulation and Licensing Department, Financial Institutions Division (FID), and you can also submit one to the Consumer Financial Protection Bureau. Both links are under Resources in New Mexico on this page.
How do I check a lender's license in New Mexico?
New Mexico Regulation and Licensing Department, Financial Institutions Division (FID) licenses lenders in New Mexico. Use the license link under Resources in New Mexico on this page to check a lender before you share your information.
Is there free help paying bills in New Mexico?
Yes. Resources in New Mexico on this page lists free help, including 211, legal aid, nonprofit credit counseling and benefits portal.
Nearby states
Sources
- nativefinance.org. 2017 N.M. HB 347. Retrieved September 23, 2026.
- krwg.org/local-viewpoints/2018-02-28/new-mexico-issues-new-rules-for-payday-loans-but-you-can-still-be-charged-up-to-175-interest. Retrieved September 23, 2026.
- nmlegis.gov. NMSA 1978, Small Loan Act of 1955. Retrieved September 23, 2026.
- rld.nm.gov. New Mexico Regulation and Licensing Department, Financial Institutions Division (FID). Retrieved September 23, 2026.
- treinenlawoffice.com/nm-law-worst-predatory-loans. Retrieved September 23, 2026.
- National Low Income Housing Coalition. Out of Reach 2026: New Mexico. 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 New Mexico. Each lender sets its own rates and terms and must show you the APR before you sign.
- BadCreditMD is not a lender or broker and does not make loans or credit decisions. When you submit a request, a lending network partner shares it with third-party lenders, and those lenders or the partner may pay us a fee for each referral. The lenders decide whether to offer you a loan.
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- Short-term loans are costly and are not a long-term financial solution. Borrow only what you can repay on time.
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- Questions about a lender licensed in New Mexico? Contact the New Mexico Regulation and Licensing Department, Financial Institutions Division (FID) or file a state complaint.
- You can submit a complaint about any lender to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.