What a loan can cost in Texas
Examples at an illustrative rate, never above Texas'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)
- 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
- $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.
Resources in Texas
Free and low-cost help in Texas, each with its official link and the date we checked it.
Lending regulator and complaints
Texas Office of Consumer Credit Commissioner (OCCC) licenses lenders in Texas.
Check a lender's license File a complaint
occc.texas.gov Checked September 23, 2026
Attorney general consumer protection
Takes complaints about scams and unfair debt collection.
texasattorneygeneral.gov Checked September 23, 2026
211
Help with rent, utilities, food and other urgent bills.
211texas.org Checked September 23, 2026
Legal aid
Free civil legal help if your income is low; income limits vary.
trla.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 Texas.
yourtexasbenefits.com 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 Texas
Each rule links to its source. How we research state rules.
Allowed in Texas: installment and personal loans, title loans and payday loans.
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Installment and personal loans[1][2][3][4] | Allowed | Limit depends on loan size | Not set by statute | Not set by statute | Regulated Lender License | Tex. Fin. Code Chapter 342, Subchapter E |
| Title loans[5][4] | AllowedNo rate limit in state law | No rate limit | Not set by statute | Not set by statute | Credit Access Business license/registration | Tex. Fin. Code Chapter 393, Subchapter G, Section 393.601 |
| Payday loans[5][4] | AllowedNo rate limit in state law | No rate limit | Not set by statute | Not set by statute | Credit Access Business license/registration | 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.
Rate, fee and license rules in Texas
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).
Title loans
- Rate cap
- Same Credit Access Business (CAB) framework as payday loans: a CAB arranges a 'motor vehicle title loan' (a loan secured by an unencumbered motor vehicle title, excluding retail installment sales financing under Chapter 348) made by a third-party lender, and the CAB's own fee is not subject to a statutory interest cap the way a direct lender's would be.
- Fees
- Same Finance Commission disclosure and next-business-day cancellation rules as payday loans apply.
- License
- Credit Access Business (CAB) license/registration under Tex. Fin. Code Chapter 393, Subchapter G, OCCC.
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.
- 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.
Rent and jobs in Texas
Typical rent and the jobless rate, to weigh before a loan payment.
Guides for Texas borrowers
Check your options in Texas
Texas questions
Does Texas law allow payday loans?
Texas law allows payday loans. State law sets no numeric cap on the cost. Source: Tex. Fin. Code Chapter 393, Subchapter G.
What is the most a lender can charge in Texas?
By loan type in Texas: Installment and personal loans: Limit depends on loan size. Title loans: No rate limit. Payday loans: No rate limit.
Where can I file a complaint about a lender in Texas?
You can file a complaint with Texas Office of Consumer Credit Commissioner (OCCC), and you can also submit one to the Consumer Financial Protection Bureau. Both links are under Resources in Texas on this page.
How do I check a lender's license in Texas?
Texas Office of Consumer Credit Commissioner (OCCC) licenses lenders in Texas. Use the license link under Resources in Texas on this page to check a lender before you share your information.
Is there free help paying bills in Texas?
Yes. Resources in Texas on this page lists free help, including 211, legal aid, nonprofit credit counseling and benefits portal.
Nearby states
- OklahomaAllowed Limit depends on loan size
- New MexicoAllowed 36% APR
- LouisianaAllowed Limit depends on loan size
- ArkansasAllowed 17% APR
- KansasAllowed 36% APR (top tier)
Sources
- occc.texas.gov. Retrieved September 23, 2026.
- occc.texas.gov/industry/cab/licensing-forms. Retrieved September 23, 2026.
- statutes.capitol.texas.gov. Tex. Fin. Code Chapter 342, Subchapter E. Retrieved September 23, 2026.
- occc.texas.gov. Texas Office of Consumer Credit Commissioner (OCCC). Retrieved September 23, 2026.
- Justia. Tex. Fin. Code Chapter 393, Subchapter G. Retrieved September 23, 2026.
- National Low Income Housing Coalition. Out of Reach 2026: Texas. 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.