Louisiana Payday Loan Laws and Protections

How Payday Loans Work in Louisiana

Payday loans covered here follow Louisiana law sections 9:3578.1–9:3578.8. According to the law, the customer writes a check to a licensed business for the current date. The business subtracts the allowable fee from the check and pays the customer the remaining amount. The business can defer the check deposit for a maximum of 30 days.

The law refers to a different type of small loan category. Since the limits for the deferred presentment transactions differ, this page is devoted to them. The amount offered and approved depends on the provider, and there is no guarantee.

Louisiana Amount and Fee Limits

Transactions cannot exceed $700 in cash. OFI publishes an annual bulletin on total unpaid principal. During the cycle from September 1, 2026 to August 31, 2027, that bulletin publishes $740 for this product and $370 for the small-loan category of the Act.

In Louisiana, a fee can be charged up to a maximum of 16.75 cents for every dollar of a check. It’s worth noting that this is a transaction percentage and not a yearly interest rate. For comparison, look at the contract for the dollar finance charge, Annual Percentage Rate (APR), Amount Received, Total Due, and Payment Due Date.

The first year after maturity, an unpaid balance can accrue interest up to 36% annually. From year two on, the limit is 18% annually. If allowed in the agreement, a provider may charge only one returned-check fee, and that is the fee charged by the provider’s bank.

Partial Payments, Rollovers, and Payment Plans

Providers must accept partial payments of $50 or more. An unpaid balance is usually not permitted to carry forward to another transaction. When using the limited exception, the borrower must pay all previously due fees and pay at least 25% of the original cash advance. Only the remaining balance after those payments may be considered the principal of a new transaction or a renewal. Before consenting to this, request the new APR and the total amount to be repaid.

With the same licensee, a borrower may only use this option once in a 12 month period. Typically, the borrower must make a request prior to their payment due date. There is a narrow exception if the borrower has been hospitalized. The written schedule must break up the balance into a minimum of four equal installments. This option may be paid in full at any time without a prepayment penalty, and no additional interest or charges may be incurred.

Ways to Address a Shortfall

Before using or refinancing high-cost, short-term credit, weigh a bill payment plan, local support, credit union small dollar loans, or nonprofit credit counseling. The site's loan comparison page can help categorize the differences in repayment structure, cost, and risks.

Before Borrowing in Louisiana

Before the exchange of personal or financial information such as your income or bank account information, always check your provider. Review your provider's privacy notice and electronic payment authorization. Verify if there would be funds available for your essential needs after the complete loan repayment. Paying an advanced loan fee in form of a gift card, cryptocurrency or by a wire transfer is not advisable.

Louisiana Payday Loan Laws & Regulations

OFI assigns one of its divisions to regulate the providers of this product. The table looks at two different limits: cash payable per transaction and the agency's annual revisions of the maximum for all remaining outstanding principal.

Please verify amount figures listed under the maximum principal section for OFI. Check the licensing and complaints for the information listed under the Louisiana OFI payday lender resources.

Regulator and statute links have been checked on September 6, 2026. The OFI principal limits get an annual update, and state laws are subject to change.