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State rules

Louisiana auto loan rules

Louisiana has 302 Census places covered on AutoLoanable, with a combined estimated population of 1,761,861. Vehicle financing in Louisiana is governed by state law — the interest-rate caps, title-lending rules, sales-finance licensing and the regulator that oversees them. The sourced figures below apply to every car loan made to a borrower in the state.

By the AutoLoanable Editorial Team · Last updated 2026-09-17

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12% cap state usury cap
5% statewide state vehicle sales tax
Permitted vehicle title loans
OFI state regulator

Key rules for car buyers in Louisiana

RuleDetailSource
Maximum legal interest rate (usury cap) 12% per annum maximum conventional interest (La. R.S. 9:3500(C)(1))
Source says: "The amount of the conventional interest cannot exceed twelve percent per annum."		 Louisiana State Legislature
as of 2026-09-17
Vehicle title loan status Title loans are made by licensed lenders under the Louisiana Consumer Credit Law; finance charges are capped at 36% on the first $1,400, 27% on $1,400-$4,000, 24% on $4,000-$7,000, and 21% above $7,000.
Source says: "The maximum loan finance charge for any consumer loan ... may equal but not exceed ... Thirty-six percent per year for that portion of the unpaid principal amount of the loan not exceeding one thousand four hundred dollars" License category: Consumer loan license (licensed lender) — Louisiana Office of Financial Institutions.		 Louisiana Office of Financial Institutions — La. R.S. § 9:3519
as of 2026-09-17
Sales finance / installment lender licensing Consumer loan license required from OFI before making consumer loans
Source says: "Persons who wish to engage in the business of making consumer loans must hold a consumer loan license issued by this Office" Motor-vehicle retail installment sales are separately governed by the Louisiana Motor Vehicle Sales Finance Act (La. R.S. §§ 6:969.1-6:969.41).		 Louisiana Office of Financial Institutions
as of 2026-09-17
State lending regulator Louisiana Office of Financial Institutions (OFI), Non-Depository Division
Source says: "OFI is responsible for the supervision of various entities which provide financial services to the citizens of the State of Louisiana."		 Louisiana Office of Financial Institutions
as of 2026-09-17
Sales tax on vehicle purchases 5% state rate; local sales taxes additional
Source says: "The state sales tax rate is 5%."		 Louisiana Department of Revenue
as of 2026-09-17

How to use these rules

  1. Check the ceiling before you compare offers

    If a quoted APR looks extreme, compare it against the Louisiana cap above — and note that a specific statutory exemption can apply to a particular product.

  2. Verify the lender is licensed

    Use the regulator named in the table to confirm the lender or sales-finance company may legally serve borrowers in the state.

  3. Know what is secured against your car

    A vehicle title loan is secured by the car itself. If the state permits it, understand the repossession terms before you sign anything.

  4. Budget for tax and fees separately

    Sales tax and title fees are financed along with the car, so they raise the amount you borrow — and therefore the interest you pay on them.

Cities in Louisiana

We cover 302 Census places in Louisiana.

Frequently asked questions

What interest rate can a lender charge on a car loan in Louisiana?
It depends on the product and the statute that governs it. The sourced table on this page lists Louisiana's usury cap, its motor-vehicle sales-finance rules and the licensing requirements, each with its publisher and a link to the primary source.
Are title loans legal in Louisiana?
Vehicle title lending is regulated state by state; some states permit it under a licensed lender, some cap it, and some prohibit it outright. See the sourced figure on this page for the current position, and confirm it with the state regulator before you sign anything.
Do I need a license to finance a car in Louisiana?
Most consumer lenders and motor-vehicle sales-finance companies must be licensed by the state regulator named on this page. You can verify a lender's licence with that regulator before you sign anything.

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