State reference · TX

Texas lending rules

Texas has 1,224 Census places covered on Paydayloaning, with a combined estimated population of 22,006,049. Payday and small-loan terms in Texas 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

Legal via licensed credit access businesses (payday/title-loan brokers)

Source: Texas Office of Consumer Credit Commissioner (OCCC) · as of 2026-09-16

Maximum rate
10% per year maximum
Texas Legislature (Texas Constitution and Statutes)
Licensing
License required for non-depository lenders charging more than 10% interest
Texas Office of Consumer Credit Commissioner (OCCC)
Regulator
Texas Office of Consumer Credit Commissioner (OCCC)
Texas Office of Consumer Credit Commissioner (OCCC)

Rules are quoted from the cited sources. How payday lending is regulated.

By the Paydayloaning Editorial Team · Last updated 2026-09-16

Key rules for borrowers in Texas

Quoted from the statute, regulator or agency named in each row.

RuleDetailSource
Maximum legal interest rate (usury cap) 10% per year maximum; a greater rate is usurious unless otherwise provided by law (Tex. Fin. Code § 302.001)
Source says: The maximum rate or amount of interest is 10 percent a year except as otherwise provided by law.
Texas Legislature (Texas Constitution and Statutes)
as of 2026-09-16
Payday lending status Legal via licensed credit access businesses (payday/title-loan brokers); the third-party lender itself is not licensed (Tex. Fin. Code ch. 393)
Source says: the credit access business that serves as the broker is the licensee in this regulated industry
Texas Office of Consumer Credit Commissioner (OCCC)
as of 2026-09-16
Small-loan / installment lender licensing License required for non-depository lenders charging more than 10% interest; Chapter 342 governs consumer loans (Tex. Fin. Code § 342.051)
Source says: Non-depository lenders who engage in making, transacting, or collecting loans with a rate of interest greater than 10% must be licensed by the OCCC.
Texas Office of Consumer Credit Commissioner (OCCC)
as of 2026-09-16
State lending regulator Texas Office of Consumer Credit Commissioner (OCCC)
Source says: The OCCC licenses and regulates non-depository lenders in the state of Texas.
Texas Office of Consumer Credit Commissioner (OCCC)
as of 2026-09-16

Cities in Texas

All Texas cities

We cover 1,224 Census places in Texas.

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.

Frequently asked questions

What interest rate can a lender charge in Texas?
It depends on the product and the statute that governs it. The sourced table on this page lists Texas's usury cap and the licensing rules, each with its publisher and a link to the primary source.
Are payday loans legal in Texas?
Payday lending is regulated state by state; some states permit it, some cap it, and some prohibit it outright. See the sourced figure on this page for the current position.
Do I need a license to lend money in Texas?
Most consumer lenders must be licensed by the state regulator named on this page. You can verify a lender's license with that regulator before you sign anything.

Related

Advertising disclosure: we may receive a referral fee. The lowest rates are only available to the most qualified applicants.

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