Personal Installment Loans in Texas
Primo Personal Loans is a direct lender serving Texas residents, including Houston, Dallas, and San Antonio. Apply online in minutes for a personal installment loan of up to $2,500, get a decision the same business day, and repay on a fixed schedule you know before you sign.
Texas installment loans at a glance: Personal installment loans are legal in Texas and regulated by the Texas Finance Code under Tex. Fin. Code § 342.201. You can borrow up to $2,500 and repay over a term of up to 5 years, with rates capped at 30% on loans ≤$500; 24% on $501-$1,050; 18% on $1,051-$2,500. There is no prepayment penalty, so paying the loan off early reduces what you owe, and lenders must disclose the full APR and payment schedule before you sign. Texas also allows payday loans.
Rules current as of July 2026.
Personal Installment Loan Rules in Texas
Texas caps APR in tiers by loan amount — the full schedule is in the table below.
Governing law: Tex. Fin. Code § 342.201
Rates & Terms for Personal Installment Loans in Texas
Personal installment loans in Texas are tiered by loan amount: 30% on principals up to $500, 24% from $501-$1,050, and 18% from $1,051-$2,500 (Tex. Fin. Code § 342.201(e)). Loans above $2,500 have no statutory cap. The maximum loan term is 1825 days, and a license is required to offer these loans.
APR Tiers by Loan Amount in Texas
Unlike flat-rate states, Texas law sets different maximum APRs depending on how much you borrow. Smaller loans may carry higher rates; larger loans are typically capped at a lower APR. The table below reflects the statutory maximums — lenders may charge less.
| Loan Amount Range | Max APR | Statutory Basis |
|---|---|---|
| Up to $500 | 30% max APR | Sec. 342.201(e)(1) |
| $501 – $1,050 | 24% max APR | Sec. 342.201(e)(2) |
| $1,051 – $2,500 | 18% max APR | Sec. 342.201(e)(3) |
APR tiers set by Texas law. Your exact rate depends on loan amount and lender.
What a Personal Installment Loan Costs in Texas
| Loan Amount | Term | APR (est.) | Total Interest | Total to Repay |
|---|---|---|---|---|
| $1,000 | 24 months | 30% | $344 | $1,344 |
| $2,000 | 24 months | 18% | $396 | $2,396 |
| $2,500 | 24 months | 18% | $495 | $2,995 |
Texas Finance Code § 342.201(e) provides tiered interest rates: 30% APR for loans up to $500, 24% APR for loans between $501 and $1,050, and 18% APR for loans between $1,051 and $2,500. The lender must provide a Truth-in-Lending disclosure showing the exact APR before signing.
What Texas Residents Should Know
Texas residents should be aware that personal installment loan rates vary by loan amount, with a maximum APR of 30% for loans up to $500. Verify the specific terms applicable to your loan.
Consumer Protections in Texas
Texas law requires lenders to be licensed under Chapter 342. Consumers can verify lender licenses through the Texas Office of Consumer Credit Commissioner. Prepayment penalties are not allowed, and lenders must provide a receipt for cash payments.
Prohibited Practices
- Wage garnishment
- Threats of criminal prosecution
- Loan stacking
- Confession of judgment
- Assignment of wages
Required Disclosures
- APR posting
- Fee schedule
- Contract in primary language
- License number
Debt Collection Rules
- Wage garnishment for this debt: not permitted
- Criminal prosecution for non-payment: not permitted
- Lender may not contact employer of military member.
Complaint Agency: Texas Office of Consumer Credit Commissioner (File a complaint)
Verify Lender License: https://occc.texas.gov/industry/regulated-lenders
Prepayment & Refinancing Rules in Texas
Understanding your repayment flexibility is important when choosing a personal installment loan in Texas.
- No prepayment penalty — Texas law prohibits lenders from charging fees for early repayment of a personal installment loan.
- Refinancing rules: Administrative fee not more than once in 365 days if interest charge authorized by Sec. 342.201(e)
Federal Consumer Protections for Installment and Payday Loan Borrowers
| Federal Law | What It Gives You | Citation |
|---|---|---|
| Truth in Lending Act / Regulation Z | Regulation Z protects consumers by requiring clear disclosure of key credit terms and costs. | 15 U.S.C. § 1601 et seq.; 12 CFR Part 1026 |
| Military Lending Act | The MLA caps the annual percentage rate at 36% for loans to active duty service members and their dependents. | 10 U.S.C. § 987 |
| Fair Debt Collection Practices Act / Regulation F | Regulation F governs the practices of debt collectors, prohibiting abusive, deceptive, and unfair practices. | 15 U.S.C. § 1692; 12 CFR Part 1006 |
| Fair Credit Reporting Act / Regulation V | Regulation V ensures accuracy and privacy of consumer credit information held by credit reporting agencies. | 15 U.S.C. § 1681; 12 CFR Part 1022 |
| Equal Credit Opportunity Act / Regulation B | Regulation B prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, or age. | 15 U.S.C. § 1691; 12 CFR Part 1002 |
| CFPB UDAAP authority | The CFPB can take action against unfair, deceptive, or abusive acts or practices in consumer financial products or services. | 12 U.S.C. § 5531, 5536 |
These federal protections apply in all 50 states regardless of state law. They set a baseline floor of consumer rights.
Full detail on each of these six federal protections, including what your lender must disclose before you sign and the 36% rate cap that applies to active-duty service members.
Federal Payday Lending Rules That Apply in Texas
Federal regulations, such as those from the CFPB and the Military Lending Act, apply in addition to state laws, providing an additional layer of consumer protection.
Texas Installment Loan Rules: FAQ
Yes. Personal installment loans are legal in Texas and regulated under Tex. Fin. Code § 342.201. Lenders must hold a state license to make these loans. A licensed lender has to follow the state's limits on rates, loan size and fees, and disclose your APR, finance charge and full payment schedule before you sign.
Texas sets its installment loan rate ceiling by loan size rather than with one flat cap: 30% on loans ≤$500; 24% on $501-$1,050; 18% on $1,051-$2,500 under Tex. Fin. Code § 342.201. Which tier applies depends on how much you borrow, and a lender may charge less than the maximum. The exact APR has to appear in your loan agreement before you sign.
In Texas, a licensed lender may write a personal installment loan of up to $2,500 under Tex. Fin. Code § 342.201. Individual lenders often approve less than the state maximum based on your income and credit profile. Borrow only what the monthly payment leaves you able to cover.
Texas allows personal installment loan terms of up to 5 years (1,825 days) under Tex. Fin. Code § 342.201. You repay in fixed scheduled installments rather than one lump sum, so a longer term lowers the monthly payment but increases the total interest you pay.
Yes, and without a penalty. Texas law does not allow a lender to charge a prepayment penalty on a personal installment loan under Tex. Fin. Code § 342.201. Paying ahead of schedule cuts the interest you owe, because interest accrues on the balance you still carry.
Texas caps loan fees separately from interest under Tex. Fin. Code § 342.201. Origination fee: $25 for loans >$1,000; $20 for loans ≤$1,000. Late fee: 5% of installment; max $30. Anything a lender charges beyond these has to be itemised in your agreement, so compare the total finance charge and not just the advertised rate.
Texas sets specific rules for refinancing a personal installment loan under Tex. Fin. Code § 342.201: Administrative fee not more than once in 365 days if interest charge authorized by Sec. 342.201(e). Refinancing restarts the interest on a new balance, so confirm the new total cost before agreeing to one.
Texas requires consumer installment lenders to hold a state license under Tex. Fin. Code § 342.201, and publishes a licensee lookup at https://occc.texas.gov/industry/regulated-lenders. Check the lender there before you share bank or Social Security details. An unlicensed lender operating in the state is not bound by these rate and fee limits.
Yes. Alongside installment lending, Texas permits payday loans under Tex. Fin. Code § 393.601-393.628. A payday loan is a single lump-sum repayment tied to your next pay date, which makes it a different and usually far more expensive product than an installment loan repaid over months.
