What a title loan costs — before Missouri’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 Missouri
- Rate cap
- No statutory rate or APR ceiling. Structural limits apply instead: minimum 30-day term, and on the third renewal and each subsequent renewal the borrower must reduce principal by 10% until paid (Mo. Rev. Stat. 367.512).
- Key law
- Mo. Rev. Stat. 367.500–367.533 (Title Loans); renewal/principal-reduction rule at 367.512.
- Enforcement
- The Missouri Division of Finance licenses title lenders, who must post rates and compute interest daily; enforcement is via licensing and disclosure rules rather than rate ceilings.
Mo. Rev. Stat. 367.512 sets no maximum rate; it only requires that upon the third renewal and any subsequent renewal the borrower reduce the principal by 10% until the loan is paid in full.
What it means for a Missouri borrower
Car title loans are legal in Missouri with no cap on the interest rate, so APRs commonly reach 200–300%+. The main borrower protection is the forced 10% principal paydown starting at the third renewal. There is no state rate ceiling to rely on.
Before you borrow in Missouri
- Check whether the lender is licensed in Missouri — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Missouri attorney general and the CFPB.
- Ask whether the balance is even collectable under Missouri law before you pay a collector.
Cheaper first — try these before a title loan in Missouri
Title Loans and tribal lenders in Missouri
Many online lenders that market title loans to Missouri 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 Missouri residents and how state law applies to them, see the Missouri tribal-lending page.
Tribal loans in Missouri →Frequently asked questions
Are title loans legal in Missouri?
In Missouri, 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 Missouri?
No statutory rate or APR ceiling. Structural limits apply instead: minimum 30-day term, and on the third renewal and each subsequent renewal the borrower must reduce principal by 10% until paid (Mo. Rev. Stat. 367.512).
What can I do about a title loan I already have in Missouri?
Missouri 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 Missouri attorney general or the CFPB if the lender breaks the rules.