Loans in Texas: payday, personal & title loan laws (2026)
In Texas, payday loans are legal through a CSO/CAB, car title loans are legal through a CSO/CAB, and personal installment loans are available from licensed lenders. Below are the verified rules, local lenders and credit unions for all 254 counties and 269 cities with 10,000+ residents.
Payday Loans Legal via CSO/CAB
Payday loans are legal in Texas but are arranged by a 'credit access business' (CAB), a licensed credit services organization that obtains the loan for you from a third-party lender.
Personal Loans
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).
Title Loans Legal via CSO/CAB
Auto title loans are legal in Texas through the same credit access business model as payday loans: a licensed CAB arranges a loan secured by your unencumbered vehicle from a third-party lender, and the CAB fee is not capped by state law.
Texas at a glance
30,188,424
Residents
$78,476
Median household income
6,405
FDIC bank branches
1,818
Credit-union branches
Texas loan rules side by side
Payday loans
| Rule | What the law says |
|---|---|
| Fee cap | No state cap on the credit access business fee. The law lets a CAB charge fees 'as agreed to between the parties', calculated daily, biweekly, monthly or on another period, as long as the fee is disclosed. Interest charged by the third-party lender is separate. (Tex. Fin. Code § 393.602(b)) |
| Rollovers | State law does not ban refinancing. A CAB must post a notice that refinancing instead of paying in full 'will require the payment of additional charges,' and must give you a disclosure showing the fees that build up if the loan is renewed or refinanced for two weeks, one month, two months and three months. (Tex. Fin. Code §§ 393.222(a)(3), 393.223(a)(2)) |
Car title loans
| Rule | What the law says |
|---|---|
| Rate cap | No state cap on the CAB's fee; fees are as agreed and must be disclosed. (Tex. Fin. Code § 393.602(b)) |
| Renewals | Refinancing is allowed. Before arranging a title loan the CAB must disclose the fees that build up if the loan is renewed or refinanced for two weeks, one month, two months and three months, and post a notice that refinancing costs extra. (Tex. Fin. Code §§ 393.222, 393.223(a)(2)) |
| Repossession | The CAB must warn you in writing that on default you may have to surrender the vehicle. Under the general Texas secured-transactions law a lender may repossess after default without a court order only if it does so without a breach of the peace, and must send a reasonable written notice before selling the vehicle. (Tex. Fin. Code § 393.223(b); Tex. Bus. & Com. Code §§ 9.609, 9.611) |
Personal loans
| Rule | What the law says |
|---|---|
| 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)) |
| Origination fee | 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)) |
Rules last checked against the state sources on October 25, 2026.
Counties in Texas
Anderson CountyAndrews CountyAngelina CountyAransas CountyArcher CountyArmstrong CountyAtascosa CountyAustin CountyBailey CountyBandera CountyBastrop CountyBaylor CountyBee CountyBell CountyBexar CountyBlanco CountyBorden CountyBosque CountyBowie CountyBrazoria CountyBrazos CountyBrewster CountyBriscoe CountyBrooks CountyBrown CountyBurleson CountyBurnet CountyCaldwell CountyCalhoun CountyCallahan CountyCameron CountyCamp CountyCarson CountyCass CountyCastro CountyChambers CountyCherokee CountyChildress CountyClay CountyCochran CountyCoke CountyColeman CountyCollin CountyCollingsworth CountyColorado CountyComal CountyComanche CountyConcho CountyCooke CountyCoryell CountyCottle CountyCrane CountyCrockett CountyCrosby CountyCulberson CountyDallam CountyDallas CountyDawson CountyDeWitt CountyDeaf Smith CountyDelta CountyDenton CountyDickens CountyDimmit CountyDonley CountyDuval CountyEastland CountyEctor CountyEdwards CountyEl Paso CountyEllis CountyErath CountyFalls CountyFannin CountyFayette CountyFisher CountyFloyd CountyFoard CountyFort Bend CountyFranklin CountyFreestone CountyFrio CountyGaines CountyGalveston CountyGarza CountyGillespie CountyGlasscock CountyGoliad CountyGonzales CountyGray CountyGrayson CountyGregg CountyGrimes CountyGuadalupe CountyHale CountyHall CountyHamilton CountyHansford CountyHardeman CountyHardin CountyHarris CountyHarrison CountyHartley CountyHaskell CountyHays CountyHemphill CountyHenderson CountyHidalgo CountyHill CountyHockley CountyHood CountyHopkins CountyHouston CountyHoward CountyHudspeth CountyHunt CountyHutchinson CountyIrion CountyJack CountyJackson CountyJasper CountyJeff Davis CountyJefferson CountyJim Hogg CountyJim Wells CountyJohnson CountyJones CountyKarnes CountyKaufman CountyKendall CountyKenedy CountyKent CountyKerr CountyKimble CountyKing CountyKinney CountyKleberg CountyKnox CountyLa Salle CountyLamar CountyLamb CountyLampasas CountyLavaca CountyLee CountyLeon CountyLiberty CountyLimestone CountyLipscomb CountyLive Oak CountyLlano CountyLoving CountyLubbock CountyLynn CountyMadison CountyMarion CountyMartin CountyMason CountyMatagorda CountyMaverick CountyMcCulloch CountyMcLennan CountyMcMullen CountyMedina CountyMenard CountyMidland CountyMilam CountyMills CountyMitchell CountyMontague CountyMontgomery CountyMoore CountyMorris CountyMotley CountyNacogdoches CountyNavarro CountyNewton CountyNolan CountyNueces CountyOchiltree CountyOldham CountyOrange CountyPalo Pinto CountyPanola CountyParker CountyParmer CountyPecos CountyPolk CountyPotter CountyPresidio CountyRains CountyRandall CountyReagan CountyReal CountyRed River CountyReeves CountyRefugio CountyRoberts CountyRobertson CountyRockwall CountyRunnels CountyRusk CountySabine CountySan Augustine CountySan Jacinto CountySan Patricio CountySan Saba CountySchleicher CountyScurry CountyShackelford CountyShelby CountySherman CountySmith CountySomervell CountyStarr CountyStephens CountySterling CountyStonewall CountySutton CountySwisher CountyTarrant CountyTaylor CountyTerrell CountyTerry CountyThrockmorton CountyTitus CountyTom Green CountyTravis CountyTrinity CountyTyler CountyUpshur CountyUpton CountyUvalde CountyVal Verde CountyVan Zandt CountyVictoria CountyWalker CountyWaller CountyWard CountyWashington CountyWebb CountyWharton CountyWheeler CountyWichita CountyWilbarger CountyWillacy CountyWilliamson CountyWilson CountyWinkler CountyWise CountyWood CountyYoakum CountyYoung CountyZapata CountyZavala County
Cities in Texas
HoustonSan AntonioDallasAustinFort WorthEl PasoArlingtonCorpus ChristiPlanoLubbockLaredoIrvingGarlandFriscoMcKinneyAmarilloGrand PrairieBrownsvilleKilleenDentonPasadenaMesquiteMcAllenWacoMidlandCarrolltonLewisvilleAbileneRound RockPearlandCollege StationThe WoodlandsRichardsonLeague CityOdessaBeaumontAllenSugar LandTylerNew BraunfelsEdinburgWichita FallsConroeSan AngeloAtascocitaTempleBryanMissionGeorgetownBaytownLongviewPharrFlower MoundCedar ParkMansfieldMissouri CityLeanderHarlingenSan MarcosNorth Richland HillsSpringPflugervilleVictoriaRowlettEulessWylieKyleDeSotoPort ArthurTexas CityLittle ElmGalvestonBurlesonRockwallGrapevineBedfordCedar HillHuntsvilleShermanKellerHaltom CityThe ColonyWaxahachieSchertzChannelviewWeslacoCoppellFriendswoodLancasterRosenbergHurstDuncanvilleMidlothianCopperas CoveProsperSocorroLa PorteFarmers BranchMission BendSan JuanTexarkanaWeatherfordHuttoTimberwood ParkCiboloFulshearDel RioCleburneCelinaLufkinHarker HeightsDeer ParkCanyon LakeSeguinWest OdessaNacogdochesForneyGreenvilleSouthlakeSachseConverseEagle PassAlvinLake JacksonBalch SpringsFort HoodColleyvilleDenisonCorsicanaPrincetonKatyUniversity ParkKingsvilleSiennaSaginawParisKerrvilleSan BenitoFresnoBenbrookBeltonAnnaPecan GroveCloverleafBig SpringMarshallHorizon CityCorinthWataugaFateEnnisDickinsonStephenvilleMurphyPortlandBoerneTerrellAlamoAltonUniversal CityMelissaRoyse CityAngletonPlainviewBrushy CreekCrowleySeagovilleLakewayLa MarqueOrangePalestineBrownwoodBrenhamSteiner RanchCinco RanchManorNederlandWhite SettlementGlenn HeightsGainesvilleBay CityAliceStaffordAddisonBellaireAldineTaylorRed OakGrovesDonnaMercedesPampaHumbleHewittSulphur SpringsGatesvilleMount PleasantHighland VillageSouth HoustonLive OakPalmviewBudaCanyonUvaldeRio Grande CityLockhartMineral WellsWest University PlaceHerefordManvelRendonHidalgoDumasJacksonvilleAzleForest HillLumbertonSeabrookTrophy ClubPort NechesTomballWells BranchKilgoreAndrewsBeevilleHendersonAthensSanta FeIowa ColonyRobinsonLantanaRichmondLevellandHornsby BendWebsterBorgerEl CampoGranburyFour CornersElginRomaSelmaFort BlissLeon ValleyFredericksburgPort LavacaLa HomaSnyderBastropBurkburnettPleasantonTown of PecosFairviewHeathFair Oaks RanchCluteBonhamRockportFreeportHeartlandScenic OaksBellmeadSonterraGalena ParkSweetwaterRoanokeRobstownRaymondvilleSan Elizario
Frequently asked questions
Are payday loans legal in Texas?
Payday loans are legal in Texas but are arranged by a 'credit access business' (CAB), a licensed credit services organization that obtains the loan for you from a third-party lender. The CAB is the OCCC licensee, and its fee is not capped by state law.
How much do payday loans cost in Texas?
No state cap on the credit access business fee. The law lets a CAB charge fees 'as agreed to between the parties', calculated daily, biweekly, monthly or on another period, as long as the fee is disclosed. Interest charged by the third-party lender is separate.
Can you roll over a payday loan in Texas?
State law does not ban refinancing. A CAB must post a notice that refinancing instead of paying in full 'will require the payment of additional charges,' and must give you a disclosure showing the fees that build up if the loan is renewed or refinanced for two weeks, one month, two months and three months.
Are title loans legal in Texas?
Auto title loans are legal in Texas through the same credit access business model as payday loans: a licensed CAB arranges a loan secured by your unencumbered vehicle from a third-party lender, and the CAB fee is not capped by state law.
What interest can title lenders charge in Texas?
No state cap on the CAB's fee; fees are as agreed and must be disclosed.
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.