Loan Laws by State in the USA

Texas operates a unique Credit Access Business (CAB) model regulated by the Office of Consumer Credit Commissioner (OCCC). There is no statutory APR cap on short-term loans, which often results in high effective APRs. However, lenders must provide complete fee disclosures and borrowers have significant protections under municipal ordinances in cities including Austin, Dallas, Houston, and San Antonio.

• No state APR cap — effective APRs can exceed 600%
• Maximum loan term: 180 days
• Rollovers permitted but limited by municipal ordinances in major cities
• All lenders must register as CABs with the OCCC

Florida regulates consumer lending under Chapter 560 of the Florida Statutes, administered by the Office of Financial Regulation (OFR). Short-term loans are capped at $500 with a fee structure of 10% of the loan amount plus a $5 verification fee. A statewide database prevents borrowers from holding more than one loan at a time.

• Maximum loan: $500 | Fee: 10% + $5 verification fee
• Loan term: 7–31 days | Max APR ~304%
• No rollovers; 24-hour cooling-off period required
• 60-day grace period with credit counseling available

New York enforces some of the strictest usury laws in the nation. Under the General Obligations Law §5-501 and Penal Law §190.40, civil usury is capped at 16% APR and criminal usury at 25% APR. Traditional high-interest payday loans are prohibited. The New York Department of Financial Services (NYDFS) actively pursues unlicensed lenders.

• Payday lending: BANNED in New York State
• Civil usury cap: 16% APR (GOL §5-501)
• Criminal usury cap: 25% APR (Penal Law §190.40)
• NYDFS license required for all consumer lenders

Illinois enacted the Predatory Loan Prevention Act (PLPA) in March 2021, establishing a 36% APR cap on all consumer loans — including payday, installment, auto-title, and personal loans. This law is administered by the Illinois Department of Financial and Professional Regulation (IDFPR) and applies to both in-state and online lenders serving Illinois residents.

• All consumer loans: 36% APR hard cap (PLPA, signed March 23, 2021)
• Applies to payday, installment, auto-title, and personal loans
• Lenders must be IDFPR licensed
• PLPA applies to out-of-state online lenders serving IL residents

Michigan regulates deferred presentment service transactions (payday loans) under MCL 487.2121, administered by the Department of Insurance and Financial Services (DIFS). Loans are capped at $600 with a tiered fee structure. Borrowers have a right to rescind by the end of the next business day, and only one loan is permitted at a time through a statewide database.

• Maximum loan: $600 | Maximum term: 31 days
• Fee: 15% on first $100, tiered down to 11% on $400–$600
• No rollovers; 1 loan at a time (statewide database enforced)
• Right to rescind by end of next business day

Indiana governs consumer lending under the Indiana Small Loan Act, administered by the Department of Financial Institutions (DFI). Payday loans are capped at $605 or 20% of gross monthly income (whichever is less). A tiered fee structure applies: 15% on the first $250, 13% on $251–$400, and 10% on $401–$605.

• Maximum loan: $605 or 20% gross income | Minimum term: 14 days
• Tiered fees: 15%/$250 | 13%/$251–400 | 10%/$401–605
• No rollovers; 1 loan at a time; 7-day cooling-off after 6 consecutive loans
• DFI licensed lenders only

Missouri is regulated by the Division of Finance. The state has relatively permissive lending laws — no state APR cap applies to short-term loans. Payday loans are capped at $500 with a term of 14–31 days. Finance charges can reach up to 75% of the original principal. Up to 6 rollovers are permitted, with a mandatory 5% principal reduction on each renewal.

• Maximum loan: $500 | Term: 14–31 days
• Finance charges: up to 75% of principal | No APR cap
• Up to 6 rollovers (5% principal reduction required per rollover)
• Cooling-off period required after 6 consecutive loans

Wisconsin regulates payday lending under Chapter 138, administered by the Department of Financial Institutions (DFI). Loans are capped at $1,500 or 35% of gross monthly income. The maximum loan term is 90 days, and only one rollover is permitted per loan cycle, followed by a mandatory 24-hour cooling-off period.

• Maximum loan: $1,500 or 35% gross income | Max term: 90 days
• No APR cap | DFI licensed lenders only
• 1 rollover permitted; 24-hour cooling-off after rollover
• Extended payment plan available upon request

Nevada regulates consumer lending under NRS 604A, administered by the Financial Institutions Division (FID). Nevada has no APR cap on short-term loans. Loan amounts are limited to 25% of the borrower's expected gross monthly income. The maximum term is 35 days, with an available 4-installment Extended Payment Plan at no additional fee.

• Maximum loan: 25% of gross monthly income | Max term: 35 days
• No state APR cap | FID license required
• Extended Payment Plan: 4 installments, no additional fee
• NSF fee cap: $25 | No criminal action against borrowers

Ohio's Fairness in Lending Act (HB 123, 2018) significantly reformed the state's lending landscape. Short-term loans are now capped at $1,000 with a maximum 28% annual interest rate plus allowable monthly maintenance fees. Loans must have a minimum term of 91 days to allow borrowers adequate repayment time.

• Maximum loan: $1,000 | Minimum term: 91 days
• Maximum interest: 28% annual + $20/month maintenance fee
• No rollovers permitted | OFC licensed lenders only
• Origination fee: up to 2% of loan amount (max $20)