Payday Loans in New Mexico: Now 120-Day Loans at 36% or Less

Not at payday prices. Since January 1, 2023, licensed small loan companies in New Mexico can charge no more than a 36% NM-APR on loans of $10,000 or less (loans of $500 or less can add a one-time 5% fee), and an installment loan must run at least 120 days.

New Mexico Loans at the 36% Cap, $300 to $10,000

The most a licensed New Mexico lender can charge, repaid monthly:

Worked out from New Mexico law at the 36% cap, with the 5% fee on loans of $500 or less. These aren't offers from lenders in our network; a lender can charge less.

The small-loan fee can be charged no more than once in 12 months. A four-payment, 120-day loan is the shortest installment loan New Mexico allows: the law requires at least four substantially equal payments and an initial stated maturity of at least 120 days.

NM-APR: The Second APR on Your Paperwork

Federal Truth in Lending rules require an APR on every loan. New Mexico adds a second one, the NM-APR, which may include charges the federal APR leaves out. The cap applies to the NM-APR, so check both numbers on your disclosure.

• Loans of more than $500 and up to $10,000: an NM-APR of 36% or less.
• Loans of $500 or less: 36% plus a fee of up to 5% of the principal, no more than once every 12 months.
• Both limits cover loans under the Small Loan Act of 1955 and the Bank Installment Loan Act of 1959, for loans made from January 1, 2023.

Who New Mexico's Cap Doesn't Cover

The cap binds New Mexico-licensed small loan companies and loans made under those two acts. FID points out where it stops:

• Banks and credit unions. They're exempt from the Small Loan Act's licensing requirements and lend under their own rules.
• Offshore and tribal lenders. FID warns that foreign companies and Native American lenders operating on tribal land aren't subject to these laws, so ask about licensing and rates before you sign.
• Out-of-state lenders aren't exempt. A lender that solicits you in New Mexico and gets the money to you here is treated as lending in New Mexico, so it needs a small loan license and must follow the Act's limits.

Besides installment loans, licensed small loan companies may offer refund anticipation loans and small business loans, FID says.

The Rates Sign Every Licensed Lender Must Post

New Mexico makes licensed lenders show their prices before you borrow:

• A LOAN RATES AND FEES sign in every licensed office, and a smaller copy at each desk where loans are made.
• On websites, social media pages and apps, a link to a New Mexico page with the same information.
• A table of every fee you may be charged, plus the contact details of the lender's problem resolution person.
• A consumer brochure of common credit terms, kept stocked by the main entrance.

Three Steps Under New Mexico's 120-Day Rule

1. Choose an amount and a term of at least 120 days; more payments lower each one but add interest.
2. Submit one request through LendUp. Lenders in our network review it, and any offer shows the APR, payments and total cost before you sign.
3. Compare the NM-APR on the disclosure with the 36% cap, and check the lender's license as shown below.

Searching FID's Small Loan Directory

1. Open FID's Small Loan Company Directory. It listed 268 active licenses on July 2, 2026 and is updated after each quarter.
2. Search for the company's legal name or doing-business-as name, and note its license number.
3. Match the license number and address to your loan documents.

To report an unresolved problem, call FID at (505) 476-4885 or use its complaint form.

Common Questions

Official Sources

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