Bill > SB1906

This bill increases the maximum allowable interest rates for certain unsecured consumer loans in Texas. Specifically, the legislation amends the Finance Code to raise the interest rate cap for different loan amount tiers. For cash advances up to $500, the maximum annual interest rate increases from 30% to 36%. For cash advances between $500 and $1,050, the rate increases from 24% to 30%. For cash advances between $1,050 and $2,500, the rate increases from 18% to 24%. The changes will only apply to loans made on or after September 1, 2025, meaning existing loans will continue to be governed by the previous interest rate rules. This bill effectively gives lenders more flexibility to charge higher interest rates on consumer loans, potentially making credit more expensive for borrowers but potentially increasing access to short-term lending options.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1906