New Mexico Payday Loan Laws and Regulations

New Mexico Payday Loan Laws and Regulations

Are Payday Loans legal in New Mexico?

Short-term Payday Loans are in the state of New Mexico and are mostly regulated through .

New Mexico Small Loan Act.pdf

The Payday Lending legislation covers all the parts of the process concerning:

  • Payday Loan amounts
  • Payday Loan repayment terms
  • Payday Loan online direct lenders
  • Payday Loan stores near you
  • Payday Loan interest rates and other fees
  • Payday Loan collecting practices
  • Payday Loan default penalties
  • The number of outstanding Payday Loans as well as a cooling-off period in-between etc.


The main Payday Loan requirements in New Mexico are:

According to the New Mexico Payday Loan Database provided by Veritec Solutions, LLC. §58-15-37 NMSA 1978:

  • There are currently 112 active locations that are registered on the state database.
  • There were 58,117 total payday loans conducted by 10,149 consumers 
  • Average Payday advance amount is $353.02 
  • Effective average APR is 281.34% with an average term of 26.43 days
  • The average advance fees paid by the consumer is $306.06.

For more details read further to find out how many Payday Loans you can borrow, whether rollovers or extensions are allowed, etc.

New Mexico Payday Loan Terms and Amounts

New Mexico residents who are eligible for a Payday Loan can get $2500 cash advance per contract. The repayment term is capped at up to 35 days.

However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for a Payday Loan in New Mexico.

If $2500 is not enough, there are always other options to receive the necessary funds in New Mexico: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.

New Mexico Payday Loans online laws 

One can apply for a Payday Loan from both storefront and online lenders. Rules and regulations concern both as well. 

Reputable online lenders operating in accordance with all relevant state and federal laws can be applied to and compared on our platform using a simple online application form.

You state the necessary amount, fill in your personal information and get suitable offers from legit direct lenders. It takes only a few minutes and doesn’t affect your credit score. 

New Mexico Payday Loans interest rates, fees and other finance charges 

The main part of payday loan payment is mostly made up of the interest rate, or APR. The average APR that may be charged for short-term cash advance in New Mexico is 416.00%. It means that if you borrow $100 Payday Loan for 14 days the finance charges will be $15.50 per $100 and a $0.50 verification fee per $100.

Besides, the total cost of a Payday Loan includes some additional fees. New Mexico lending rules allow to charge $15 NSF fee.

The law obligates New Mexico Payday Loan lenders to provide you with a written disclosure of all the rates and fees in the understandable language. You should read them carefully and if you agree acknowledge the notification by signing the contract.

New Mexico Payday Loans direct lenders regulations 

According to New Mexico payday loan laws all direct lenders are obliged to register their companies which will allow issuing payday loans contract. It concerns both Online Payday Loans and Payday Loans Near Me.

A person shall not engage in the business of lending in amounts of five thousand dollars ($5,000) or less for a loan without first having obtained a license from the director. Nothing contained in this subsection shall restrict or prohibit a licensee under the New Mexico Small Loan Act of 1955 from making loans in any amount under the New Mexico Bank Installment Loan Act of 1959 in accordance with the provisions of Section 58-7-2 NMSA 1978.

New Mexico Payday Loans consumer information

Besides amounts, rates and fees, consumers must be also well aware of other details of Payday Loans in New Mexico. They include the availability and number of rollovers, extensions and repayment plan, a cooling-off period, any default penalties or additional fees, etc. Check out the table below to find the most essential information:

Rollovers or extensions repayment plan of over a 130-day period with no additional fees
Cooling-off period 10 days
NSF fee $15 NSF fee
Criminal actions Prohibited

Look for more detailed information on the official New Mexico state regulator website – New Mexico Financial Institutions Division, 2550 Cerrillos Road, 3rd Floor Santa Fe NM 87505.

Legitimate Payday Loans Online with NO credit check in New Mexico 

Looking for a legal Payday Loan with No credit check in New Mexico? You must understand the meaning of this phrase correctly at first. No credit check implies that a lender will not inquire about your credit history information from or send your borrowing data to any of the three major credit bureaus Equifax, Experian, and TransUnion.

If you don’t want to damage your credit history, New Mexico law allows you to apply for a Payday Loan with No credit check. But you should understand that a lender needs to check your creditworthiness at least in some way. He can perform a soft credit check when a lender pre-approves you for a loan and this inquiry will not appear on your credit report. Or there’re other ways to prove you can afford the cash advance. Payday Loan lenders use the tracking system to verify your debts, check your income, etc. And generally, they charge higher interest to lessen the risks.

No credit checks are conducted to see if the borrower can afford the loan. As a result, the loans attract low-income and financially vulnerable customers who cannot qualify for or have exhausted other forms of credit. – Issue Brief, New Mexico Data Shows Chronic Borrowing With Payday Loans, November 30, 2005

New Mexico Payday loans online no credit check are one of the easiest options of getting quick cash to cope with emergency financial requirements, especially for the people with poor credit.

Does New Mexico law allow Payday Loans for bad credit borrowers?

The average credit score in New Mexico is 659, placing it in the good range. But it doesn’t mean that those who have a worse credit can’t apply for a Payday Loan in the state. 

  • First of all, there’re a lot of legit direct lenders in New Mexico providing Payday cash advance to borrowers with both good and bad credit score.
  • Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
  • Find out how to improve your credit score and do your best to do it fast. 
  • Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.

Legit Payday Loans in New Mexico collection practices

If you can’t repay the loan amount plus interest on a due date it means you default the loan. When New Mexico direct lender isn’t able to cash your check after the repayment term is over he may charge you an NSF fee. NSF fee means there are non-sufficient funds on your account. The amount charged is determined by the lender and stated in the agreement and may also be limited by the state’s Payday Loan law.

Any criminal actions as well as other rude collecting practices are prohibited in New Mexico.

The supervisor from that office interviews witnesses, reviews the payday lender’s business records and documentation, and determine whether to pursue civil or criminal charges.

New Mexico Payday Loans news  – latest changes

Unfortunately, although these rules and regulations are in place protect consumers in New Mexico, many high-interest lenders have changed the terms and structure of their loans so that the loans no longer fall under the definition of “payday loans” in New Mexico. As a result, lenders can continue to charge interest rates well over 40%.

New Mexico Payday Loans historical background

1939 Small loan legislation was enacted and it presupposed a 12% APR cap on unsecured loans.
1978 The caps were repealed which allowed payday lenders flourish at that period.
2006 The Military Lending Act effectively capped payday loans offered to the military at 36% APR.
2007 The Payday Loan Reform set the loan amount up to 35 days, and created the database.$2500 and terms up to
June 2, 2016 A Payday Loan Rule was proposed.

Get your money NOW!