Texas is a state located in the South Central United States. Payday loans in Texas are legal and there are laws which regulate the Texas Payday Loans companies in the state.

Maximum amount which a borrower can take is not specified by the Texas payday loan law. Loan term can vary from 7-31 days. Texas payday loan laws state that a lender must obtain a license before they operate.

Under Texas law a lender is allowed to charge no more than $1 per $5 that’s borrowed for loans under $30. For loans over $30 but no more than $100, a service fee of one-tenth the amount can be applied. And for cash advances over $100, a fee of no more than $10 can be charged. Texas payday loan laws prohibit lenders from break one loan into two loans for the purpose of collecting higher interest fees. The APR for a two-week loan in the amount of $100 is 309%.