Payday Loans and Cash Advance in Louisiana

Legal, up to $700, fee cap removed in 2025. Below: the law, the limits, what $300 costs here, who regulates it, and how to request a cash advance online in Louisiana.

Is a Cash Advance Legal in Louisiana?

Payday loans are legal in Louisiana under the Louisiana Deferred Presentment and Small Loan Act, La. R.S. 9:3578.1 and following, which has been in force since 2000 and is enforced by the Office of Financial Institutions. The law covers two products: a deferred presentment transaction, where the lender holds your check for up to 30 days, and a small loan of $350 or less for 60 days or less. Act 510 of the 2025 legislative session made the biggest changes in years. Effective August 1, 2025, the amount a lender can advance on a deferred presentment transaction doubled from $350 to $700, the old $45 ceiling on fees was removed, the Office of Financial Institutions must publish a new inflation-adjusted maximum each year, and lenders are barred from reporting negative information about borrowers to credit bureaus. The fee itself is still set at 16.75% of the face amount of the check, which the Office describes as $20 per $100 borrowed, plus a $10 documentation fee. That makes Louisiana one of the most expensive payday markets in the country: $300 for two weeks costs about $70, an APR near 608%. Rollovers are banned, but a partial-payment refinance is allowed.

The governing law is Louisiana Deferred Presentment and Small Loan Act, as amended by Act 510 of 2025 (La. R.S. 9:3578.1 et seq.; definitions at 9:3578.3; fees at 9:3578.4).

Loan Limits and Terms in Louisiana

Louisiana sets the fee as a percentage of the check rather than the cash, which is why the Office of Financial Institutions translates it as $20 for every $100 you borrow. On top of that the lender may add a $10 documentation fee per transaction. Until August 2025 the finance charge could not exceed $45, which effectively capped loans around $220 to $350; Act 510 removed that ceiling and raised the deferred presentment limit to $700, so the fee now scales with the loan, and OFI must publish a new CPI-adjusted maximum on its website by September 1 each year. A rollover, meaning paying only the fee to extend, is illegal. What the law allows instead is a refinance: you pay the accrued fees plus at least 25% of the principal and the remaining 75% is written as a new loan with new fees. Before the due date the lender must accept partial payments of $50 or more, and every contract must include an extended payment plan.

What a $300 Loan Costs in Louisiana

La. R.S. 9:3578.4 allows a fee of 16.75% of the face amount of the check, which the Office of Financial Institutions expresses as $20 per $100 borrowed: 3 x $20 = $60 on $300. The statute also permits a $10 documentation fee, bringing the finance charge to $70 and the total repayment to $370. Since August 1, 2025 there is no dollar ceiling on that fee. APR = 70 / 300 x 365 / 14 = 6.08, or about 608%. Over the full 30-day deferred presentment term the same $70 works out to about 284%.

Run your own numbers with the cash advance calculator.

Consumer Protections and Who to Call in Louisiana

• Every deferred presentment and small loan lender must be licensed by the Office of Financial Institutions, keep at least $25,000 in unencumbered cash, and submit to examination, and the Office takes written complaints against any licensee.
• The fee is limited to 16.75% of the face amount of the check plus a single $10 documentation fee, and the lender cannot add other charges to the transaction.
• Rollovers are illegal: a lender cannot let you pay only the fee to extend the loan, and any refinance must be preceded by payment of the fees plus at least 25% of the principal.
• Before the due date the lender must accept a partial payment of $50 or more, and every deferred presentment or small loan contract must contain an extended payment plan option.
• Since August 1, 2025, a licensee is prohibited from reporting negative information about you to any credit bureau or credit reporting service, so a missed payday payment cannot be used to damage your credit file.
• The Office of Financial Institutions must publish the current maximum outstanding principal balance on its website each year, so the legal ceiling is public and a lender cannot claim a higher one.
• Active duty service members and their dependents are protected by the federal Military Lending Act, which caps the total cost of a payday loan at 36% APR including the documentation fee.

Complaints and licence checks go to the Louisiana Office of Financial Institutions, Non-Depository Division: 225-925-4660, ofi.la.gov, or file a complaint at the regulator's complaint page. The federal CFPB also takes complaints about any lender.

Online vs Storefront Lenders in Louisiana

The Deferred Presentment and Small Loan Act does not carve out a separate regime for internet lenders. Any company making deferred presentment transactions or small loans to Louisiana residents needs a license from the Office of Financial Institutions, must meet the same $25,000 liquidity requirement, and is bound by the same fee schedule, $700 limit, rollover ban, and extended payment plan rule as a storefront in Baton Rouge or Shreveport. Louisiana has one of the densest networks of payday storefronts in the country, so most borrowers still use a physical location, but online lenders, including out-of-state and tribal companies without a Louisiana license, advertise heavily to residents. The Office of Financial Institutions cannot examine a lender that never applied for a license and may be unable to help if a tribal lender claims sovereign immunity, which is why its consumer FAQ tells borrowers to confirm licensure first. You can call the Non-Depository Division at 225-925-4660 to verify a license or file a complaint through the Office's non-depository complaint page. For unlicensed or tribal online lenders, the Consumer Financial Protection Bureau and the Federal Trade Commission are the fallback.

Alternatives If a Payday Loan Is Not the Right Fit

Louisiana's small loan under the same Act, capped at $350 and 60 days, carries the same fee schedule as a deferred presentment loan, so it is not a cheaper option. Real alternatives sit outside the payday statute. Consumer loan companies licensed under the Louisiana Consumer Credit Law make installment loans repaid over months at rates well below payday levels, and the Office of Financial Institutions licenses and lists them. Federal credit unions may offer payday alternative loans of $200 to $2,000 at no more than 28% APR under National Credit Union Administration rules, and many Louisiana credit unions have their own emergency loan programs. Some employers now provide earned wage access or a payroll advance without a finance charge. For a utility, rent, or food emergency, Louisiana 211 and local community action agencies can connect you to assistance that does not have to be repaid, and the creditor you owe will often agree to a short extension for free. Even a credit card cash advance costs a fraction of $70 on $300 for two weeks.

Compare the installment loan and payday alternative loan options before you decide.

Frequently Asked Questions

Nearby States

• TexasThe fee cap, a worked example and the regulator to call in Texas.
• ArkansasThe fee cap, a worked example and the regulator to call in Arkansas.
• MississippiThe fee cap, a worked example and the regulator to call in Mississippi.