Payday Loans in Louisiana: Laws, Costs, and Your Options (2026)

Payday loans in Louisiana are legal and licensed as deferred presentment transactions under the Louisiana Deferred Presentment and Small Loan Act, La. R.S. 9:3578.1 and following. The fee is capped at 16.75% of your check, the lender can hold the check for at most 30 days, and the maximum balance is $740 through August 2027. Rollovers are banned, and once a year you can convert a loan you cannot repay into an installment plan with no added fees. This page covers what the Act allows, what a loan costs, your rights, and which of the lenders we review serve Louisiana. For how Louisiana compares with every other state, see payday loan laws by state.

Louisiana payday loan rules at a glance

Rule	Louisiana
Legal status	Permitted, through an Office of Financial Institutions licensee (R.S. 9:3578.1 and after)
Regulator	Office of Financial Institutions, 225-925-4660
Maximum loan	$740 (deferred presentment) and $370 (small loan), September 1, 2026, to August 31, 2027
Fee cap	16.75% of the face amount of the check (R.S. 9:3578.4(A)(1))
Other fees	None, except those the law lists, such as a returned-check charge (R.S. 9:3578.4(B)-(C))
Maximum term	30-day check hold; small loans 60 days or less (R.S. 9:3578.3)
Rollovers	Not allowed; a 25% paydown can start a new transaction (R.S. 9:3578.6(A)(7))
Extended payment plan	Once per 12 months, at least four installments, no added fees (R.S. 9:3578.4.1)
Partial payments	Lender must accept any payment of $50 or more (R.S. 9:3578.6(A)(3))
Criminal liability	No threat of prosecution or referral over a bounced check (R.S. 9:3578.6(A)(5))
Credit reporting	Lender cannot report negative information to a credit bureau (R.S. 9:3578.6(A)(9))
Military borrowers	36% federal MAPR cap under the Military Lending Act

How a Louisiana payday loan works

You sign a written agreement and give the lender a check dated the day you write it. The lender agrees to hold the check for no more than 30 days before depositing it, and pays you the amount of the check minus its fee (R.S. 9:3578.3(3)). A small loan works the same way on price but is a consumer loan of up to the small-loan maximum for 60 days or less.

Act 510 of 2025 changed the numbers. It doubled the amount a lender can pay you on a deferred presentment transaction from $350 to $700, dropped the old $45 dollar cap on the fee, and told OFI to publish a new maximum balance by September 1 each year, adjusted for inflation and rounded up to the nearest $10 (R.S. 9:3578.4(D)). OFI’s published figures for September 1, 2026, to August 31, 2027, are $740 for a deferred presentment transaction and $370 for a small loan.

What a payday loan costs in Louisiana

The fee is up to 16.75% of the face amount of the check:

Check amount	Maximum fee	You receive	APR held 14 days	APR held 30 days
$100	$16.75	$83.25	About 525%	About 245%
$300	$50.25	$249.75	About 525%	About 245%
$600	$100.50	$499.50	About 525%	About 245%

The APR columns are our own arithmetic on the amount you receive, not a quote; your agreement states the actual finance charge. Beyond the fee, the lender may be reimbursed once per check for the fee its own bank charges when your check is returned (R.S. 9:3578.4(B)); beyond that and a few fees the statute names, no other fees or charges may be added (R.S. 9:3578.4(C)). If the loan is still unpaid at maturity, the lender may charge interest at 36% a year for up to one year, then 18% a year after that (R.S. 9:3578.4(A)(2)).

If you pay the loan off in full within the first five days, the lender must refund the unearned part of the fee, though it keeps $20 of it (R.S. 9:3578.5).

Rollovers and the extended payment plan

A lender cannot renew or roll over a payday loan. What it can do is accept a partial payment of 25% of the amount advanced plus fees and write a new transaction for the remaining balance. Otherwise you can take a new loan from that lender only once the old one is paid in full (R.S. 9:3578.6(A)(7)). The lender also cannot split one loan into several agreements to earn a higher fee (R.S. 9:3578.6(A)(4)).

If you cannot repay when the loan is due, Louisiana law gives you a way out: once in any 12-month period, you can elect an extended payment plan (R.S. 9:3578.4.1). The rules:

1. Ask before the due date. If you were hospitalized, you can ask within 72 hours of discharge, with proof.
2. At least four installments. The plan covers the balance and any fees already due, in substantially equal payments spread evenly over the plan.
3. No added cost. The lender cannot charge interest or any added fees during the plan, and you can pay it off early without penalty.
4. Time to start. The first installment is due no sooner than 30 days after you sign the plan, unless you agree to an earlier date that matches your payday.
5. No new loan meanwhile. You cannot take another payday loan from that lender until the plan is paid.

Every lender must post a notice of this right at its location or on its website homepage, and print it in 16-point bold type on the first page of each loan agreement.

Your rights

1. A licensed lender. Confirm the license with the Office of Financial Institutions at 225-925-4660.
2. A capped fee. No more than 16.75% of the check, and no other fees except those the law lists.
3. No rollovers. The lender cannot renew or roll over your loan.
4. One extended payment plan a year. Four or more installments, with no added interest or fees.
5. Partial payments accepted. The lender must accept any partial payment of $50 or more.
6. A partial refund for early payoff. Pay in full within five days and the unearned fee comes back, less $20.
7. No prosecution threats. The lender cannot threaten or refer you for prosecution over a bounced check.
8. No negative credit reporting. The lender cannot report negative information about you to a credit bureau.
9. No collateral. The lender cannot take an interest in your property for the loan.
10. The federal Truth in Lending box. The APR, finance charge, amount financed, and total of payments must be disclosed before you sign.

What happens if you cannot repay

Ask for the extended payment plan before the due date; it adds no interest or fees. If a lender refuses a plan you qualify for, threatens prosecution, or charges more than the law allows, report it to the Office of Financial Institutions. Read what happens if you default on a payday loan for how collection works, and how to escape the payday loan cycle if one loan keeps leading to the next. If the real problem is a bill you cannot cover, start with what to do when you can’t make this month’s payment.

Alternatives worth trying first in Louisiana

Several routes usually cost less than a Louisiana payday loan, roughly cheapest first:

Option	What it costs	The catch
Payment plan on the bill itself	Often nothing	You have to ask before the due date
211 referral to rent, utility, or food help	Nothing	What is funded varies by area
Federal credit union PAL I	Up to 28% APR plus an application fee of up to $20; $200 to $1,000, 1–6 months	One month of membership first; one PAL at a time
Federal credit union PAL II	The same caps; up to $2,000, 1–12 months	Not every federal credit union offers one
Louisiana payday loan	Up to 16.75% of the check: $100.50 on $600, so you receive $499.50 (above)	About 525% APR if held 14 days; no rollovers

The credit union limits come from federal regulation (12 CFR 701.21(c)(7)): no more than three PALs in six months, and no rollovers. Call 211 to reach the local referral line. Employer pay advances and earned-wage apps cost more than their small fees suggest; payday loan alternatives that actually work has the numbers for each option. If an installment loan is on the table, installment loans vs. payday loans explains how to compare total cost.

If you do borrow, borrow the smallest amount, take the latest date the lender will agree to hold your check, and confirm the lender’s Louisiana license before you sign.