Payday loans in New Mexico
New Mexico bans payday loans; instead, small loans up to $10,000 must run as installment loans for at least 120 days with a 36% all-in APR cap.
- Payday lending
- Banned
- Max cost
- 36% APR
- Top amount
- None allowed
Are payday loans legal in New Mexico?
New Mexico bars payday lending: the New Mexico Small Loan Act of 1955 permits installment loans only. You must receive at least 120 days to repay any loan up to $10,000, split into four or more nearly equal payments. The annual percentage rate, meaning the yearly cost, must stay at or below 36%, with fees, credit insurance, and any extra products included. Loans totaling $500 or less must be free of fees. For larger loans, the fee limit is five percent of the amount borrowed, applied once every 12-month period.
Online lenders fall under these rules, even if the company lacks a physical location in the state. If a loan breaks the license or rate rules, it is void, so the lender cannot collect any funds. To report any unlicensed company, contact the state Financial Institutions Division, and verify the lender's license there before you borrow.
- The 36% limit includes everything: Regulation Z finance charges and ancillary product fees, effective January 1, 2023 via HB 132, which lowered the prior 175% ceiling.
- This cap moves along with the prime rate. The allowed APR goes up by the excess over 10% when prime holds above 10% for three months in a row.
- Two-week payday loans are ruled out because Small Loan Act loans require at least four substantially equal installments and a term of at least 120 days.
- Loans of $500 or less carry no fee at all. Above that amount, any fee is limited to 5% of principal and may be charged only once annually.
- In the case State ex rel. King versus Loans from B&B Investment Group carrying 1,147% to 1,500% APR were found substantively unconscionable by the New Mexico Supreme Court in 2014 during an Attorney General suit.
- The Attorney General secured a judgment in 2016 ordering FastBucks to pay about $32.3 million in restitution for unfair and unconscionable practices.
New Mexico payday loan laws
- Law in force
- New Mexico Small Loan Act of 1955
- Cited as
- NMSA 1978, §§ 58-15-3, 58-15-17
- Fees under the law
- Permitted annual percentage rate above thirty-six percent, calculated under 12 CFR Part 1026 (Regulation Z), with ancillary product charges included
- How long a loan runs
- not less than one hundred twenty days for the initial stated maturity (Small Loan Act loans excluding refund anticipation loans)
- Installment lending limits
- For Small Loan Act loans up to $10,000, the all-in APR cannot exceed 36%, repayment requires at least four substantially equal installments over 120 days or more, loans of $500 or less carry no fee, and larger loans have a fee cap of 5% of principal once every 12 months (NMSA 58-15-17).
Also checked against rld.nm.gov. Full statute text.
Online lenders that list New Mexico
Eight companies we track say they lend in New Mexico: 2 online installment lenders, 5 tribal lenders and 1 loan broker.
Both lenders with a posted APR post a top APR above New Mexico's 36% APR cap.
| Lender | Kind | Posted APR |
|---|---|---|
 NetCredit | Installment | 34.99% to 99.99% |
 OppLoans | Installment | 99% to 195% |
 Viva Payday Loans | Broker | Partner lenders quote 4.99% to 1,386% |
Tribal loans in New Mexico
To lend $10,000 or less in New Mexico, a person needs a Small Loan Act licence. Even lenders without a physical location in the state fall under the law when they offer over-rate loans via the internet or other electronic means. Loans that go against the licence or rate rules are void.
On the immunity claim tribal lenders make, see are tribal loans legal.
Five tribal lenders we track list New Mexico as a state they lend in. Three of the five publish an APR, from 73.7% to 725%. All three post a top APR above New Mexico's 36% APR cap.
| Lender | Posted APR |
|---|---|
 Mobiloans | 73.7% to 405% |
 Spotloan | 99% to 490% |
 BrightLending | 325% to 725% |
 Minto Money | Not published |
| American Web Loan | Not published |
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New Mexico and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| New Mexico | Banned | 36% APR | None allowed |
| Arizona | Banned | None in the law | None allowed |
| Colorado | Only as installments | 36% APR | At any time, no single lender may provide more than $500. |
| Oklahoma | Only as installments | None in the law | Across all licensees, one borrower’s outstanding principal from small loans is limited to $1,500 and moves with CPI every other year. Payments due each month may not exceed 20% of monthly income before deductions. |
| Texas | Allowed | None in the law | State law sets no limit, though city rules can (Houston: 20% of gross monthly income per loan). |
New Mexico loans with no credit check
Installment loan rates: For Small Loan Act loans up to $10,000, the all-in APR cannot exceed 36%, repayment requires at least four substantially equal installments over 120 days or more, loans of $500 or less carry no fee, and larger loans have a fee cap of 5% of principal once every 12 months (NMSA 58-15-17).
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in New Mexico
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the New Mexico Regulation and Licensing Department, Financial Institutions Division (FID).
- Had trouble with a lender? Report the lender.
Sources for New Mexico
- Tax refund anticipation loans or installment loans are the only types allowed under the Small Loan Act.; These loans require an initial stated maturity lasting at least 120 days.; At least four substantially equal installments must be used to repay the loan.law.justia.com
- The maximum rate dropped from 175% APR to 36% under HB 132.nmlegis.gov
- To lend $10,000 or less, you need a licence.; Any loan issued against licence or rate rules is void.; The law applies to internet or electronic loans with excessive rates, even if the lender lacks a physical location in New Mexico.law.justia.com
- An installment loan, per FID, is $10,000 or less and requires repayment in at least four equal payments.; Small loan companies are licensed and examined by FID.rld.nm.gov
- The online services page of RLD explains the application and verification process for small loan company licences.rld.nm.gov
- Complaints about licensees are mediated by FID, which also seeks reports on those without licences.rld.nm.gov
- HB 347 struck out the definition of payday loans from the Small Loan Act in 2017 (deleted text appears in brackets).nmlegis.gov
- The B&B loans had APRs of 1,147.14% up to 1,500%.; Those rates were found substantively unconscionable by the New Mexico Supreme Court in 2014.law.justia.com
- FastBucks was ordered by a court in November 2016 to pay $32,255,054 in restitution following an Attorney General suit.nmdoj.gov