Online loans are perfectly legal in Texas. However, lenders who want to charge more than 6% APR must register with the Texas Office of Consumer Credit Commissioner. By doing so, online loan providers agree to observe these limits in Texas: For personal loans up to $2,010, the maximum effective interest rate is 32%. For personal loans between $2,011 and $16,750, there is a three-tiered maximum rate of 30%, 24%, and 18%. All other personal loans have a maximum rate of 18%. Signature small installment loans of up to $1,340 have a maximum effective interest rate of 240%. However, a borrower and lender can sign an agreement that waives these limits, thereby defeating the caps on interest rates. The story is different for payday and title loans, where the nominal maximum APR is 10%. Texas has a complicated procedure that centers on the Credit Services Organization Act. The Act provides for the establishment of Credit Access Businesses (CABs) that broker payday and title loans. When you take a payday or title loan in Texas, you go through a CAB that matches you to an independent lender.