Loan Rates and Fees in Arkansas

Arkansas does not license payday or short-term lenders. The state constitution caps interest at 17% per year, which prohibits the fee structures payday lenders rely on. For installment loan costs, see below.

Arkansas's constitution sets a hard ceiling: no lender can charge more than 17% annual interest on any consumer loan, regardless of license type. Interest accrues on a simple-interest, declining-balance basis - only on what you still owe.

Arkansas does not separately authorize origination fees or upfront charges outside the 17% annual rate cap; any fee labeled "origination" or "administrative" counts toward the total cost and cannot push your effective rate above 17% per year. If your agreement includes such a charge, confirm with the Arkansas Securities Department that it falls within the cap.

On a $1,000 loan at 17% annual interest for 12 months with equal monthly payments, you'd repay approximately $1,093 total - roughly $93 in interest. Federal law requires lenders to disclose the APR on your agreement; on a 12-month loan at the 17% cap, that APR is approximately 17%.

• Refinancing restarts interest on the new balance - compare what you still owe on the current loan to the new loan's total of payments before you agree.
• Returned payment fees have no specific dollar cap in Arkansas statute; ask the lender for the exact amount before you sign, and verify with the Arkansas Securities Department if the amount seems unreasonable.
• Late fees have no specific dollar cap in Arkansas statute; ask the lender for the exact amount and grace period before you sign.
• You can pay off early with no penalty - interest stops accruing on the date you pay, so your total cost drops. See Installment loans in Arkansas for repayment details.

If an offer exceeds 17% annual interest, report it to the Arkansas Securities Department.

• Total of payments: add up every scheduled payment and confirm it matches the "total of payments" line in the federal disclosure box.
• If you are an active-duty servicemember or dependent, federal law caps most loan rates at 36% APR under the Military Lending Act - confirm your lender is applying this cap if it applies to you.