Louisiana Payday Loans: $350 Limit, Laws & Costs Guide (2026)
Louisiana has the strictest payday loan limit in the United States at just $350—less than any other state. Combined with a complex fee structure (16.75% + $45 cap), understanding Louisiana's unique regulations is essential for borrowers.
Louisiana Payday Loan Quick Facts
- Legal Status: Legal and regulated
- Maximum Amount: $350 (LOWEST in the nation)
- Maximum Fees: 16.75% of amount + $45 origination fee (up to $103.63 total)
- Typical Loan Terms: 7-60 days (commonly 14 or 30 days)
- Maximum APR: 768% (for 14-day loan)
- Regulatory Authority: Louisiana Office of Financial Institutions (OFI)
- Rollovers/Renewals: Prohibited
- Loan Limit: 1 loan at a time (verified via database)
Understanding Louisiana Payday Loan Laws
Louisiana's payday lending industry operates under the Louisiana Deferred Presentment and Small Loan Act, which imposes the nation's strictest loan amount cap. At just $350 maximum, Louisiana limits are significantly lower than neighboring states like Texas ($1,500) or Mississippi ($500).
The Louisiana Office of Financial Institutions (OFI) oversees payday lending and enforces these unique regulations:
- Maximum loan amount: $350 (lowest in the nation)
- Maximum fee structure: 16.75% of loan amount PLUS $45 origination fee (total fees capped at $103.63)
- Loan terms: 7-60 days
- One loan at a time (enforced through statewide database)
- No rollovers or renewals permitted
- Mandatory cooling-off period after loan repayment
- Required written disclosures in plain English
⚠️ Louisiana's Unique Challenge:
While Louisiana's $350 limit protects consumers from over-borrowing, the two-part fee structure (16.75% + $45) makes small loans extremely expensive. On a $100 loan, fees total $61.75 (61.75% of the loan amount!). The percentage cost decreases as loan amounts increase, making maximum loans relatively more affordable.
How Much Do Louisiana Payday Loans Cost?
Louisiana's unique fee structure creates unusual cost dynamics. Here's the breakdown:
| Loan Amount | Fee (16.75% + $45) | Total Repayment | Fee % of Loan | APR (14 days) |
|---|---|---|---|---|
| $100 | $61.75 | $161.75 | 61.75% | 1,609% APR |
| $200 | $78.50 | $278.50 | 39.25% | 1,023% APR |
| $300 | $95.25 | $395.25 | 31.75% | 827% APR |
| $350 (maximum) | $103.63 | $453.63 | 29.61% | 771% APR |
💡 Borrowing Strategy:
In Louisiana, borrowing the maximum $350 is actually more cost-effective than smaller amounts due to the flat $45 fee. A $350 loan costs 29.6% of principal, while a $100 loan costs 61.75%—more than double the percentage. If you need payday financing, borrow closer to the maximum to minimize relative costs.
Louisiana Cities: Payday Loan Affordability Analysis
Here's how Louisiana's payday loan costs compare to typical household incomes in the state's three largest cities:
New Orleans (Population: 383,997 | Median Income: $4,250/month)
New Orleans, Louisiana's cultural and tourism hub, has moderate incomes. A maximum $350 loan ($453.63 total repayment) represents 10.7% of monthly income for median earners—manageable but expensive. New Orleans residents have access to credit unions like Louisiana FCU and community resources.
Baton Rouge (Population: 227,470 | Median Income: $4,083/month)
As the state capital and petrochemical industry center, Baton Rouge has similar incomes to New Orleans. A $350 loan ($453.63 repayment) equals 11.1% of monthly income. Baton Rouge residents should explore employer assistance programs and credit union alternatives before payday borrowing.
Shreveport (Population: 187,593 | Median Income: $3,750/month)
Shreveport's economy, centered on healthcare and casinos, provides lower median incomes. A $350 payday loan ($453.63 repayment) represents 12.1% of monthly income—a significant burden. Shreveport residents should carefully consider whether a $103.63 fee (30% of the loan) is worth the cost.
Eligibility Requirements for Louisiana Payday Loans
To qualify for a payday loan in Louisiana, you typically need:
- Age: At least 18 years old
- Residency: Louisiana resident with valid state ID or driver's license
- Income: Verifiable regular income (employment, Social Security, disability, etc.)
- Bank Account: Active checking account in your name
- Contact Information: Working phone number and email
Louisiana payday lenders typically do not check traditional credit scores, making loans accessible to those with bad credit. The statewide database verifies you don't have an existing payday loan.
How to Apply for a Louisiana Payday Loan
- Find a Licensed Lender: Verify the lender's license through the Louisiana OFI website (ofi.la.gov).
- Gather Documents: Have your ID, recent pay stubs or benefit statements, and bank details ready.
- Apply Online or In-Store: Submit your application for fast approval.
- Review Fee Structure: Ensure you understand the two-part fee (16.75% + $45) and total repayment amount.
- Receive Funds: Approved borrowers typically get funds within one business day (online) or immediately (in-store).
- Plan Repayment: Set aside funds for your due date to avoid NSF fees and collections.
Pros & Cons of Louisiana Payday Loans
✅ Advantages
- ✓ Lowest maximum prevents over-borrowing ($350 limit)
- ✓ No credit check for most lenders
- ✓ Fast approval (often same-day)
- ✓ No rollovers prevents debt cycling
- ✓ One-loan limit protects consumers
- ✓ Flexible terms (7-60 days)
❌ Disadvantages
- ✗ Extremely expensive (768% APR for 14 days)
- ✗ Flat fee penalizes small loans ($45 on $100 = 45%!)
- ✗ Very low maximum ($350 may not cover needs)
- ✗ Complex fee structure (16.75% + $45 confuses borrowers)
- ✗ Short terms create repayment pressure
- ✗ No credit building (not reported to bureaus)
Better Alternatives to Louisiana Payday Loans
Before paying 30% or more in fees, consider these lower-cost options:
- Credit Union Payday Alternative Loans (PALs): Louisiana Federal Credit Union, Pelican State CU, and others offer PALs with APRs capped at 28%—dramatically lower than payday loans.
- Employer Paycheck Advances: Many Louisiana employers offer interest-free paycheck advances—ask your HR department.
- Payment Plans: Contact utility companies, landlords, or medical providers about payment arrangements.
- Community Assistance: Catholic Charities of New Orleans, Second Harvest Food Bank, and local churches provide emergency financial help.
- Personal Installment Loans: Online lenders like Upgrade, LendingClub, or Upstart offer installment loans with lower APRs (36-120%) and longer terms.
- Credit Card Cash Advances: While expensive (25-30% APR), these are still far cheaper than Louisiana's 768% payday loan APR.
- Gig Work: Quick earnings from Uber, DoorDash, Instacart, or TaskRabbit can cover emergencies without borrowing.
Frequently Asked Questions
What is the maximum payday loan amount in Louisiana?
Louisiana has the lowest payday loan limit in the nation at $350. Combined with a 16.75% fee plus $45 origination fee cap, total fees cannot exceed $103.63 on a $350 loan.
How much does a $350 payday loan cost in Louisiana?
A $350 payday loan in Louisiana costs up to $103.63 in fees (16.75% = $58.63 plus $45 origination fee), for a total repayment of $453.63. This translates to 768% APR for a 14-day loan or 394% APR for a 30-day loan.
Who regulates payday loans in Louisiana?
The Louisiana Office of Financial Institutions (OFI) regulates payday lenders under the Louisiana Deferred Presentment and Small Loan Act. Verify lender licenses at ofi.la.gov.
How many payday loans can I have at once in Louisiana?
Louisiana law limits borrowers to one payday loan at a time. Lenders use a statewide database to verify you do not have an outstanding loan before issuing a new one.
What is the loan term for Louisiana payday loans?
Louisiana payday loans have a minimum term of 7 days and maximum term of 60 days. Most lenders offer 14-day or 30-day terms based on your pay schedule.
Can I roll over my Louisiana payday loan?
No, Louisiana law prohibits rollovers and renewals of payday loans. You must pay off your existing loan in full before taking out a new one.
Do Louisiana payday lenders check credit?
Most Louisiana payday lenders do not perform traditional credit checks with Experian, Equifax, or TransUnion. However, they verify your payday loan history through the state database.
Are payday loans available in all Louisiana cities?
Yes, payday loans are available throughout Louisiana. Major cities like New Orleans, Baton Rouge, and Shreveport have multiple storefront locations, while online lenders serve all areas.
How can I verify a Louisiana payday lender is licensed?
Check the Louisiana Office of Financial Institutions website (ofi.la.gov) to verify lender licenses. All legitimate payday lenders must comply with the $350/$103.63 fee cap.
What happens if I cannot repay my Louisiana payday loan?
If you cannot repay on time, contact your lender immediately. Louisiana law does not mandate extended payment plans, but some lenders may offer arrangements. Defaulting can result in NSF fees, collections, and ChexSystems reporting. Louisiana prohibits criminal prosecution for defaults.
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⚠️ Important Consumer Notice
Payday loans are designed for short-term financial needs and should not be used as long-term financial solutions. Borrowing more than you can afford to repay can lead to a cycle of debt.
This information is for educational purposes only and does not constitute financial advice. Loan terms, availability, and costs vary by lender. Always read your loan agreement carefully before signing.
Louisiana residents: Report unlicensed or abusive lenders to the Louisiana Office of Financial Institutions at (225) 925-4660 or visit ofi.la.gov.
About the Author
Rostislav Sikora is an AI Orchestrator and Loan Specialist with expertise in consumer finance regulations across all 50 states. With a focus on financial literacy and consumer protection, Rostislav helps borrowers understand their options and make informed decisions about payday loans and alternative financing.
Last updated: January 27, 2026 | Learn more about our editorial process