New Mexico regulates covered consumer loans under the Small Loan Act and requires a New Mexico-specific annual percentage rate disclosure. For loans over $500 through $10,000 under the Small Loan Act or Bank Installment Loan Act, the NM-APR cannot exceed 36%. A vehicle can be collateral, but the loan terms, lien, repayment schedule, and lender license matter.
Last reviewed: August 14, 2026. General consumer information, not legal advice.
Are title loans legal in New Mexico?
Vehicle-secured consumer lending is governed through New Mexico’s lending laws rather than a standalone title-loan rate chart. The Financial Institutions Division’s required lender disclosure explains that the NM-APR for covered loans above $500 and up to $10,000 cannot exceed 36%. For a loan of $500 or less, NM-APR may be 36% plus a fee no greater than 5% of principal, imposed no more than once per borrower per 12 months.
Sources: 12.18.4 NMAC required lender signage, 12.18.8 NMAC nonresident lending, and New Mexico Small Loan Act amendments.
New Mexico consumer-loan checks
| Topic | New Mexico rule or consumer check |
|---|---|
| NM-APR over $500 | For covered loans over $500 through $10,000, NM-APR cannot exceed 36%. 12.18.4 NMAC. |
| Loans $500 or less | NM-APR cannot exceed 36% plus a fee up to 5% of principal, no more than once per borrower per 12 months. 12.18.4 NMAC. |
| NM-APR disclosure | New Mexico requires a separate NM-APR disclosure that can include charges not included in the federal TILA APR. |
| License | A lender charging more than the applicable lawful maximum to New Mexico residents must be licensed under the Small Loan Act. 12.18.8 NMAC. |
| Online lender | A loan solicited and made available to a New Mexico resident in New Mexico is treated as made in New Mexico even if the lender is outside the state. 12.18.8 NMAC. |
| Loan term | Small Loan Act loans generally cannot have an initial maturity under 120 days unless they are refund anticipation loans. |
| Installments | Covered non-refund-anticipation loans must be installment loans, generally repayable in at least four substantially equal payments of principal and interest. |
| All-in rate | The current-law APR calculation includes finance charges and specified ancillary-product and service charges, with the stated public-official fee exception. |
| Loan documents | Ask for the NM-APR, TILA APR, total finance charge, payment schedule, lien documents, payoff information, and every fee. |
| Complaint notice | Required New Mexico lender signage includes a problem-or-complaint contact and identifies the Financial Institutions Division as regulator. |
Before signing
Confirm the lender’s legal name and New Mexico license. Compare the NM-APR with the federal APR, then request the amount financed, finance charge, total of payments, payment schedule, lien/security agreement, default terms, and written payoff amount. Do not sign blanks or rely on a monthly payment without reviewing the full cost.
Default and vehicle collateral
A title or lien can put transportation at risk. If a payment problem develops, contact the lender in writing, request an accounting and payoff figure, retain the agreement and every notice, and seek prompt legal help for an urgent repossession issue. A lender serving New Mexico residents from outside the state remains subject to the Small Loan Act’s requirements when the rule’s conditions are met.
Alternatives and help
- Call 211 for local food, housing, utility, and transportation resources.
- Ask a credit union or bank about a personal loan, hardship option, or payment plan.
- Use the lender’s mandatory New Mexico complaint contact and the Financial Institutions Division for unresolved licensing or compliance concerns.
- File covered federal complaints through the CFPB.
Cities we serve in New Mexico
Local pages remain subject to lender-relationship and quality review. This statewide hub is the New Mexico-law reference until individual destinations are validated.
Frequently asked questions
What is New Mexico’s NM-APR cap for covered loans over $500?
The required lender disclosure states that NM-APR cannot exceed 36% for covered loans over $500 through $10,000.
Can an out-of-state lender make a covered loan to a New Mexico resident?
Under 12.18.8 NMAC, a covered loan made available to a New Mexico resident after solicitation in New Mexico is considered made in New Mexico and is subject to the Act.
Must covered loans be paid in installments?
Non-refund-anticipation loans under the cited Small Loan Act rules must generally be installment loans with at least four substantially equal payments.
What should I compare before using a car as collateral?
Compare NM-APR, federal APR, all fees, total of payments, lien terms, payment schedule, and default provisions.
