Special situations

Does Texas cap personal loan APRs?

Short answer

Texas has no general APR cap on consumer installment loans, making it one of the more lender-friendly states. Mainstream personal loan lenders operate in Texas at standard market rates (typically 6-36% depending on credit). Payday lending has separate Texas-specific regulations.

Context

Texas's hands-off approach to consumer-loan APRs results in broad lender access for Texas residents. The full national market of online installment lenders, banks, and credit unions competes for Texas borrowers, often producing competitive pricing through market forces rather than regulation.

The trade-off: without a regulatory ceiling, the worst subprime products in Texas can charge APRs above what other states allow. Texas borrowers should compare offers carefully and avoid lenders charging above 36% APR, which is the de-facto industry ceiling in most other states.

Editorial

Reviewed by: Compliance Review
Last reviewed: May 22, 2026

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