Loan Rates and Fees in New Mexico

New Mexico does not license payday or short-term lenders - single-payment, high-fee loans are prohibited under state law. For installment loan costs, see below. For non-loan options, visit Alternatives in New Mexico.

Licensed small lenders in New Mexico may not charge an annual percentage rate (APR) greater than 36% on loans up to $10,000 under the New Mexico Small Loan Act of 1955, as amended effective January 1, 2023. The APR calculation includes interest, finance charges, ancillary product charges, and credit insurance premiums - only amounts paid to a public officer (such as filing or recording fees) are excluded.

Loans under $500 may also be subject to a one-time origination fee of up to 5%. No other origination fee, closing fee, or upfront charge is permitted. Every loan must have a minimum term of 120 days and be repayable in at least four substantially equal installments.

On a $1,000 loan at 36% APR repaid over 12 monthly payments, you'd repay approximately $1,206 total - roughly $206 in interest plus $1,000 in principal. Federal law requires lenders to disclose the APR on your loan agreement before you sign.

• Refinancing counts as a new loan and restarts interest on the new balance - compare your remaining balance to the new loan's total of payments before you agree.
• Returned payment fees (labeled "NSF fee" or "returned check fee"): no specific dollar cap is set by the Small Loan Act - ask the lender for the exact amount before you sign and confirm with the New Mexico Financial Institutions Division.
• Late fees: no specific cap is set by the Small Loan Act - ask the lender for the exact amount and grace period before you sign.
• You can prepay in full or in part at any time with no penalty - interest stops accruing on the amount you pay off. See the installment loans page for early payoff details.

If an offer exceeds these limits, verify with the New Mexico Financial Institutions Division.