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States Texas Installment Loans

Installment Loans in Texas

Page last reviewed: October 28, 2026 · Reviewed for accuracy by Betty Walsh

Lenders licensed by the OCCC can charge up to 30% a year on the first $4,600 of a Texas installment loan, less on larger balances, plus an administrative fee of up to $130 on loans made from July 1, 2026.

Check Your Options
Rate cap 30% to $4,600, 24% to $9,660, 18% to $23,000
Fee Administrative fee up to $130; not refunded if you pay early
Example $3,000 over 24 months: $167.74 a month at the cap, before the fee
Small loans Up to $1,840: 12.5% charge (max $130) plus $4 per $100 a month
You need ID, proof of income and a bank account
Example Payments Small Loans

LendUp isn't a lender. We pass your request to lenders in our network; offers aren't guaranteed, and we may earn compensation if a loan is funded.

Monthly Payments Under the 30/24/18 Brackets

LoanPaymentsInterest
$1,000, 12 mo12 × $97.49$169.88
$3,000, 24 mo24 × $167.74$1,025.76
$4,500, 36 mo36 × $191.03$2,377.08
$8,000, 48 mo48 × $280.77$5,476.96
$15,000, 60 mo60 × $443.25$11,595.00

Worked out from Texas law at the maximum for loans made from July 1, 2026 to June 30, 2027, not offers from lenders in our network; a lender can charge less.

Larger loans blend the brackets. A $130 fee taken from the loan lifts the APR to about 59% on $1,000, 35% on $3,000 and 26% on $15,000.

Loan amount
$3,000
24 monthly payments
Monthly payment
$167.74
at 30% a year
Total interest
$1,025.76
plus a fee of up to $130
APR
~35%
with the $130 fee

Add-On or Simple Interest: Two Ways to Price the Same Loan

A lender can instead charge add-on interest: $18 per $100 a year on the first $2,760 and $8 per $100 above, up to $23,000. Both bracket sets move each July with inflation, and the two methods land close together:

Simple interest at 30%
  • $1,000 over 12 months: 12 × $97.49
  • $169.88 in interest
  • Interest runs on the balance you still owe
Add-on at $18 per $100
  • $1,000 over 12 months: 12 × $98.33
  • $180.00 in interest, about 32% APR
  • Interest is set for the full term up front

Small Loans of $1,840 or Less: Flat Charges Instead of Interest

For loans of up to $920, or $1,840 under section 342.259, a lender can charge an acquisition charge of the lesser of 12.5% or $130 plus a handling charge of $4 a month for each $100 advanced. Insurance charges aren't allowed on these loans.

LoanPaymentsCharges (APR)
$500, 6 mo6 × $113.75$182.50 (~116%)
$900, 10 mo10 × $137.25$472.50 (~102%)
$1,500, 12 mo12 × $195.83$850.00 (~92%)

Same basis: the legal maximum, not offers from our network. The term can't exceed one month per $20 advanced, and only one acquisition charge is allowed a month, even on a refinance.

Late Charges, Refinancing and the One-Fee Rule

  • A late charge needs a written contract and can't start until after the 10th day past due.
  • On small loans of $100 or more, it's capped at the greater of $10 or 5 cents per $1 of the installment.
  • On a 30/24/18 loan, a refinance can't add another administrative fee for 365 days.
  • Repay a small loan early and the unearned handling charge is refunded.

Licensed lenders made 1,930,881 interest-bearing loans worth $3.49 billion in 2024, and 2,106,676 small loans worth $2.02 billion, OCCC reports. An installment loan arranged by a credit access business is a CAB loan, with no fee cap; see Texas payday loan costs.

Three Steps Toward a Chapter 342 Loan

  1. Pick an amount and term; the tables show the most a licensed lender can charge.
  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. Check whether the offer comes from a regulated lender or a CAB before you sign.
Check Your Options

Matching the Lender to an OCCC Regulated Lender License

Official lookup tool NMLS Consumer Access
  1. Search NMLS Consumer Access by the lender's legal name or NMLS ID.
  2. Look for an active Texas regulated lender license, not a credit access business license.
  3. Match the name and address to your offer. Banks don't need this license.

Questions or complaints: OCCC at (800) 538-1579 or [email protected].

Common Questions

What is the maximum interest rate on an installment loan in Texas?

For licensed lenders, 30% a year on the first $4,600, 24% up to $9,660 and 18% up to $23,000, on loans made from July 1, 2026.

What fees can a Texas installment lender charge?

An administrative fee of up to $130. Small loans use a 12.5%% acquisition charge (no more than $130) and $4 a month per $100 instead.

Can I get an installment loan with bad credit in Texas?

You can apply; each lender decides and approval isn't guaranteed. A licensed lender's price still stays within the caps.

Does paying off a Texas installment loan early save money?

Usually. Simple interest runs only on what you still owe. The administrative fee and acquisition charge aren't refunded.

Is a CAB installment loan the same thing?

No. Its CAB fee has no cap; OCCC's average was $163.09 per $100 in the second quarter of 2026.

How do I check a Texas installment lender's license?

Search NMLS Consumer Access for an active Texas regulated lender license, or call OCCC at (800) 538-1579.

Official Sources

General information, not legal advice. Facts on this page were checked against these sources on October 28, 2026.

← Texas loan rules