What a title loan costs — before Nebraska’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 Nebraska
- Rate cap
- 24% per year on the unpaid principal balance up to $1,000 and 21% above $1,000 (Neb. Rev. Stat. § 45-349, formerly § 45-1024). No triple-digit APR is permitted; the only above-cap exception is for real-property-secured loans of $7,500+, which does not cover motor vehicles.
- Key law
- Nebraska Installment Loan and Sales Act, Neb. Rev. Stat. §§ 45-334 to 45-380 (effective Oct. 1, 2025 per LB 474; formerly the Installment Loan Act, §§ 45-1001 to 45-1070), rate ceiling at § 45-349. Initiative 428 (2020) separately capped only delayed-deposit/payday loans at 36% APR.
- Enforcement
- The Nebraska Department of Banking and Finance (NDBF) licenses and supervises installment lenders. There is no separate title-lender license; a lender taking a vehicle title as collateral must hold an installment loan license and stay within the 24%/21% cap.
Nebraska caps title-secured consumer loans at 24% per year on the first $1,000 and 21% above (Neb. Rev. Stat. § 45-349, carried forward from repealed § 45-1024) — so triple-digit-APR title loans cannot legally be made; the 2020 Initiative 428 36% cap applies only to payday lenders.
What it means for a Nebraska borrower
A lender can legally take a motor-vehicle title as collateral in Nebraska, but only as an installment loan capped at roughly 24% APR. That ceiling makes the classic high-cost single-payment title loan (100–300% APR elsewhere) economically non-viable, so Nebraska has no genuine high-cost title-loan market.
If you already have a title loan in Nebraska
A loan that violates Nebraska’s ban may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- Check whether the lender is licensed in Nebraska — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Nebraska attorney general and the CFPB.
- Ask whether the balance is even collectable under Nebraska law before you pay a collector.
Cheaper first — try these before a title loan in Nebraska
Title Loans and tribal lenders in Nebraska
Many online lenders that market title loans to Nebraska 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 Nebraska residents and how state law applies to them, see the Nebraska tribal-lending page.
Tribal loans in Nebraska →Frequently asked questions
Are title loans legal in Nebraska?
In Nebraska, a high-cost single-payment title loan is not legally viable. The state’s rate cap or an outright ban makes a ~300% APR title loan void or unavailable, so licensed title lenders do not operate — and a lender that lends anyway is on weak legal footing.
What is the maximum title loan rate in Nebraska?
24% per year on the unpaid principal balance up to $1,000 and 21% above $1,000 (Neb. Rev. Stat. § 45-349, formerly § 45-1024). No triple-digit APR is permitted; the only above-cap exception is for real-property-secured loans of $7,500+, which does not cover motor vehicles.
What can I do about a title loan I already have in Nebraska?
Because Nebraska effectively bans high-cost title loans, a loan that exceeds the state limit may be partly or fully uncollectible. Check whether the lender is licensed in Nebraska — many high-cost online lenders are not. This is general information, not legal advice.