Title Loans in Louisiana

Title loans are preferred by people as they offer a lot of flexibility when compared to the traditional loans available and help the borrower keep costs significantly down. Sometimes getting a loan from a bank or credit union can be very difficult, as there may be stringent financial requirements or other obstacles. There are established loan laws in Louisiana to protect customers from unfair and predatory practices of lending. Title loans are legal in Louisiana, and there are no explicit laws for title loans in Louisiana. There are certain laws that regulate small dollar amount options, as well as long and short-term loans.

The State of Louisiana regulates who is eligible to borrow, who is eligible to lend, how frequently one can borrow, and how much a person can borrow when they want to use a vehicle as collateral for a loan. Louisiana has consumer protection laws in place to ensure that no one violates the loan agreements and that all parties are treated fairly.



Title loans are not legal in every state, as some states consider them a form of predatory lending. Other states have regulations in place to limit the amount you can borrow. A few states are attempting to limit or cap the interest and fees that come with most bad credit title loans.

Title loans can sometimes expose consumers to the risk of losing their vehicles through repossession. Louisiana allows many loan amounts and options when you want to borrow cash. It may prove very difficult to keep your vehicle once offered for collateral on a title loan, as the interest can be extremely high. It’s worth noting, most applicants turn to this form of funding because they have limited choices for cash. Many have bad credit or a past bankruptcy and can’t qualify for traditional funding options like a bank or credit union loan. Even an installment loan from an online company can be tough to get if you have bad or poor credit. A common alternative to car title loans with no income verification is to consider a vehicle pawn. This carries the same risk but usually will allow a borrower to receive a greater amount of money, as the lender holds the title and the vehicle as collateral.



The borrower must be 18 years or older to secure a title loan. The borrower also needs to have an ID that is issued by the government. He or she must be in possession of a valid vehicle title showing their ownership of the vehicle, and provide proper proof of residence and income. The title loan laws in place in Louisiana require binding contracts to list the terms, interest, and costs of the loan. This must include any fees that are applicable, in addition to the interest rate of the loan.

There are no upper limits on how much can be borrowed with a car title loan in Louisiana, but there is a $350 minimum. This may prove dangerous for borrowers who don’t need a large amount of cash. As it can be easier to take out a loan for more money than you can easily repay. Under the laws, the interest rate for online title loans cannot be more than 36 percent. The maximum cost of the loan, including fees, is set by law. Lenders are also not permitted to penalize the borrower for early repayment. Using your vehicle as collateral for cash with an online title loan can prove to be a viable means of securing quick funds in case of an emergency. But borrowers in Louisiana should be careful to do their homework and make sure to read all the fine print before signing any contracts.