State reference · NM
New Mexico lending rules
New Mexico has 105 Census places covered on Paydayloaning, with a combined estimated population of 1,428,968. Payday and small-loan terms in New Mexico are set by licensed lenders under state law; the sourced rules below apply to every borrower in the state.
Advertising disclosure: Paydayloaning may receive a referral fee if you apply through the link above. That fee does not change the rate you are offered, and it does not change our content. We are not a lender. The lowest rates are only available to the most qualified applicants. Read the full disclosure.
The verdict
Payday-style small loans capped at 36% APR
Source: New Mexico Legislature · as of 2026-09-16
- Maximum rate
- 15% annually absent a written contract fixing a different rate (NMSA 1978, 56-8-3)
- New Mexico Compilation Commission (NMOneSource, official NMSA)
- Licensing
- Lenders making Bank Installment Loan Act loans (other than federally insured depositories) must be licensed…
- New Mexico Legislature (Legislative Finance Committee fiscal impact report)
- Regulator
- New Mexico Financial Institutions Division (FID), Regulation and Licensing Department
- New Mexico Regulation and Licensing Department, Financial Institutions Division
Rules are quoted from the cited sources. How payday lending is regulated.
Key rules for borrowers in New Mexico
Quoted from the statute, regulator or agency named in each row.
| Rule | Detail | Source |
|---|---|---|
| Maximum legal interest rate (usury cap) | 15% annually absent a written contract fixing a different rate (NMSA 1978, 56-8-3) Source says: "The rate of interest, in the absence of a written contract fixing a different rate, shall be not more than fifteen percent annually" |
New Mexico Compilation Commission (NMOneSource, official NMSA) as of 2026-09-16 |
| Payday lending status | Payday-style small loans capped at 36% APR (HB 132 of 2022; effective January 1, 2023; cap rises only if prime rate exceeds 10% for three consecutive months) Source says: "a permitted annual percentage rate greater than thirty-six percent, calculated pursuant to 12 CFR Part 1026" |
New Mexico Legislature as of 2026-09-16 |
| Small-loan / installment lender licensing | Lenders making Bank Installment Loan Act loans (other than federally insured depositories) must be licensed under the Small Loan Act (2022 requirement) Source says: "a new requirement for lenders making loans under the BILA (other than a federally insured depository institution) to be licensed under the SLA" |
New Mexico Legislature (Legislative Finance Committee fiscal impact report) as of 2026-09-16 |
| State lending regulator | New Mexico Financial Institutions Division (FID), Regulation and Licensing Department Source says: "We regulate a variety of financial institutions operating in New Mexico including:" |
New Mexico Regulation and Licensing Department, Financial Institutions Division as of 2026-09-16 |
| Small loan company licensing/regulation | Small loan companies are a regulated institution category of the Financial Institutions Division Source says: "Small Loan Companies" |
New Mexico Regulation and Licensing Department, Financial Institutions Division as of 2026-09-16 |
Cities in New Mexico
All New Mexico citiesWe cover 105 Census places in New Mexico.
Advertising disclosure: Paydayloaning may receive a referral fee if you apply through the link above. That fee does not change the rate you are offered, and it does not change our content. We are not a lender. The lowest rates are only available to the most qualified applicants. Read the full disclosure.