Researching the Law

• Chapter 306 of the Texas Finance Code establishes ceiling limits for commercial loans and Chapter 342 deals with consumer loans.
  
  

Commercial Loans

• Commercial loans can not bear more than 18 percent interest per year annually, although the interest rate can float with inflation up to 24 percent. Commercial loans exceeding $250,000 can charge up to 28 percent interest. Depending on the type of business, these rates can be much higher. For example, car loans can charge up to 27 percent interest and pawn shops can charge up to 240 percent.
  
  

Consumer Loans

• Depending on the amount and type of consumer loan, Texas allows a maximum interest rate of up to 30 percent, however, you should check with applicable state laws depending on the type of loan.
  
  

Enforcement

• If you are involved with or know someone is involved with a loan in excess of these usury fees, contact the Texas Attorney General for further assistance.