Personal loans in Texas
Census ACS 2020–2024 5-year estimates; NCUA June 2026 call report; FDIC BankFind, Oct 2026.
Texas personal loan rules at a glance
| Governing law | Texas Finance Code Chapter 342 (consumer loans). Subchapter E covers small installment loans. (Tex. Fin. Code ch. 342) |
|---|---|
| Rate cap | Under the true-daily-earnings method: 30% a year on the part of the cash advance up to the first bracket, 24% up to the second, and 18% up to the third. OCCC set the brackets at $4,600, $9,660 and $23,000 for loans made July 1, 2026 through June 30, 2027. (An alternative add-on method allows $18 per $100 per year up to $2,760 and $8 per $100 per year up to $23,000.) For Subchapter E small loans (cash advance up to $920, or up to $1,840 under § 342.259) the lender may instead charge an acquisition charge plus an installment account handling charge of up to $4 a month per $100. (Tex. Fin. Code §§ 342.201(a), (e), 342.251, 342.252, 342.259) |
| License required | A Chapter 342 license is required to make, transact or negotiate loans that charge more than other law allows. (Tex. Fin. Code § 342.051(a)) |
| Loan sizes covered | The tiered rates apply to cash advances up to $23,000 (2026-27 bracket). Small-loan alternate charges apply to cash advances up to $920 (or $1,840 under § 342.259). (Tex. Fin. Code §§ 342.201(e), 342.251; OCCC rate bracket notice) |
| Origination / other fees | An administrative fee is allowed. The statute sets $25 (loans over $1,000) or $20 (loans of $1,000 or less), but the Finance Commission may set a higher maximum by rule; OCCC set the maximum administrative fee and the small-loan acquisition charge at $130 for loans made July 1, 2026 to June 30, 2027. The fee may be charged only once per 180 days on refinancing (once per 365 days for loans priced under the 30/24/18% method). (Tex. Fin. Code §§ 342.201(f), (g), 342.252(b)) |
Bad credit loans in Texas
Bad credit doesn't automatically rule you out in Texas. Many lenders in our network look at your income and bank activity, not just your score, and offer personal installment loans of $500 to $5,000 to borrowers with fair or poor credit. Rates are higher than prime offers, so compare the monthly payment and total cost before you accept. More on bad-credit loans.
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Compare neighboring states
Lenders must follow the law of the state where you live, not where you visit.
| State | Rate cap |
|---|---|
| Arkansas | 17% a year maximum for non-bank lenders, set by the state constitution. |
| Louisiana | Blended tiers: 36% to $1,400, 27% to $4,000, 24% to $7,000, 21% above. |
| New Mexico | 36% APR all-in cap on loans up to $10,000 (raised from 175%). |
| Oklahoma | Supervised loans: about 32% plus fed funds rate (tiered); small loans: 17% monthly. |
Personal Loans by city in Texas
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Also see: Payday Loans in Texas · Title Loans in Texas · All Texas loan options
Frequently asked questions
Is there a cap on personal loan interest rates in Texas?
Tiered caps for licensed Chapter 342 lenders: up to 30% a year on the first $4,600, 24% on the part from $4,600 to $9,660, and 18% on the part up to $23,000 (amounts for loans made July 1, 2026 to June 30, 2027). Small loans up to $1,840 may instead use an acquisition charge plus a monthly handling charge, which produces much higher APRs.
Do personal loan lenders need a license in Texas?
A Chapter 342 license is required to make, transact or negotiate loans that charge more than other law allows.
Can I get a personal loan with bad credit in Texas?
Yes, some lenders in our network work with fair or bad credit, but approval is not guaranteed and rates are higher. Licensed lenders in Texas must follow the state's consumer-lending rules shown above; tribal and bank-partner lenders may follow different rules, so compare the APR on every offer.
Can I get a personal loan in Texas with bad credit?
Yes, it's possible. Many lenders in our network work with borrowers who have fair, poor or limited credit, and they look at factors like income and employment, not just your score. Approval and rates depend on your full profile, and nothing is guaranteed, but checking your options is free. Texas residents can see if they qualify for $100 to $5,000 in about 3 minutes.
How do installment loans work in Texas?
You apply, the lender reviews your income and credit profile, and if you're approved you receive a lump sum deposited into your bank account. You then repay it in equal scheduled payments over an agreed term, with interest built in. Your agreement shows each payment amount and date before you sign. Texas residents can see installment loan offers with our free 3-minute form.
Where can I find a loan for bad credit in Texas?
You can apply at local banks and lenders in Texas, or go online to reach more lenders at once. Banks often have stricter credit requirements, while many online lenders consider all credit types. Our free form sends one request to multiple lenders in our network, so you don't have to apply one by one. Many applicants get a decision within minutes.
How can I get an emergency loan in Texas?
Unexpected bills happen, and an online emergency loan can help you handle them quickly. Fill out our 3-minute form with your income and bank details, and lenders in our network will review your request. Many make decisions within minutes, and approved funds are often deposited by the next business day. Amounts range from $100 to $5,000, and you're never obligated to accept an offer.