What a payday loan costs — before Louisiana’s rules
A payday loan typically costs $15–$20 per $100 borrowed for a two-week term — roughly 400% APR — and is due as a single lump sum on your next payday. That single-payment structure, not the fee on any one loan, is the trap: most fees come from borrowers who cannot clear the balance in one go and roll it over. Where a state caps rates below payday levels, licensed payday lending disappears and a loan above the cap is generally void — not legally collectible, whatever the contract says.
The law in Louisiana
- Rate cap
- No effective APR cap; a deferred-presentment finance charge of 16.75% of the check’s face amount (~400%+ APR). The maximum loan is set annually.
- Key law
- Louisiana Deferred Presentment and Small Loan Act; regulated by the Office of Financial Institutions (OFI).
- Enforcement
- The state’s attempt to force tribal lenders to obtain a Louisiana license was blocked by federal courts upholding tribal sovereign immunity.
A two-week $350 Louisiana payday loan at the 16.75% fee equals roughly 437% APR, and federal courts blocked the state from requiring tribal lenders to be licensed.
What it means for a Louisiana borrower
Licensed payday loans at ~400%+ APR are legal, and courts have shielded tribal lenders from Louisiana licensing — so tribal loans operate freely and are hard for the state to unwind. Louisiana is also home to the Tunica-Biloxi Tribe’s Mobiloans.
Before you borrow in Louisiana
- File a complaint with the Louisiana Office of Financial Institutions.
- For a tribal loan, consult a consumer attorney — state licensing enforcement has been blocked by federal courts.
Cheaper first — try these before a payday loan in Louisiana
Payday Loans and tribal lenders in Louisiana
Many online lenders that market payday loans to Louisiana residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Louisiana residents and how state law applies to them, see the Louisiana tribal-lending page.
Tribal loans in Louisiana →Frequently asked questions
Are payday loans legal in Louisiana?
In Louisiana, payday-style loans are legal and enforceable, commonly at around 400% APR. The speed is real; so is the cost and the rollover trap. Compare the total dollars repaid before you borrow, and try a credit-union alternative first.
What is the maximum payday loan rate in Louisiana?
No effective APR cap; a deferred-presentment finance charge of 16.75% of the check’s face amount (~400%+ APR). The maximum loan is set annually.
What can I do about a payday loan I already have in Louisiana?
Louisiana allows this lending, so the loan is generally enforceable — but you can still revoke ACH authorization in writing, avoid taking a second loan to cover the first, and file a complaint with the Louisiana attorney general or the CFPB if the lender breaks the rules.