What a title loan costs — before Louisiana’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Louisiana
- Rate cap
- Graduated finance charge under La. R.S. 9:3519: 36%/yr up to $1,400, 27% on $1,400–$4,000, 24% on $4,000–$7,000, 21% above $7,000. R.S. 9:3530 lets lenders add origination, documentation, and notary fees not counted as interest, pushing effective APRs well above the face rate.
- Key law
- Louisiana Consumer Credit Law, La. R.S. 9:3510 et seq.; finance charge at R.S. 9:3519; fee carve-out at R.S. 9:3530.
- Enforcement
- The Louisiana Office of Financial Institutions (OFI) licenses and supervises consumer lenders.
La. R.S. 9:3530 states an origination fee shall not be considered a loan finance charge and a documentation fee shall not be counted as interest, allowing add-on fees on top of the R.S. 9:3519 rate.
What it means for a Louisiana borrower
Louisiana clearly permits car title loans, written for more than $350 under the Consumer Credit Law. Although the headline rate is 36% on the smallest loans, lenders may layer on origination, documentation, and notary fees that state law does not treat as interest, so the true cost is materially higher than 36% APR.
Before you borrow in Louisiana
- Check whether the lender is licensed in Louisiana — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Louisiana attorney general and the CFPB.
- Ask whether the balance is even collectable under Louisiana law before you pay a collector.
Cheaper first — try these before a title loan in Louisiana
Title Loans and tribal lenders in Louisiana
Many online lenders that market title 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 title loans legal in Louisiana?
In Louisiana, single-payment auto title loans are legal and enforceable, commonly around 300% APR, with the car as collateral. The speed is real; so is the repossession risk. Check the total cost and never pledge the car you rely on to get to work.
What is the maximum title loan rate in Louisiana?
Graduated finance charge under La. R.S. 9:3519: 36%/yr up to $1,400, 27% on $1,400–$4,000, 24% on $4,000–$7,000, 21% above $7,000. R.S. 9:3530 lets lenders add origination, documentation, and notary fees not counted as interest, pushing effective APRs well above the face rate.
What can I do about a title 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.