Can a lender in Arkansas legally charge you triple-digit interest on an installment loan? A state-licensed lender cannot. Arkansas writes its interest cap into the state constitution, and for most consumer loans that cap is 17% a year.

The catch is that some lenders are not bound by it. If you are weighing a small installment loan (a personal loan repaid in fixed monthly payments) before or during a home purchase, you need to know which kind of lender you are dealing with.

Where the 17% limit comes from

Arkansas voters approved Amendment 89 in 2010. Section 3 of the amendment says the maximum rate on loans "not described in Sections 1 and 2 shall not exceed seventeen percent (17%) per annum." The FindLaw text was last confirmed current on March 28, 2024.

The legislature did not set its own number. Ark. Code § 4-57-104 lets parties agree in writing to interest up to the Amendment 89 limit, and § 4-57-101 sets 6% a year when a contract names no rate. The Arkansas House's list of 2025 laws taking effect January 1, 2026 contains no change to small-loan or installment rules.

The penalty for charging more is harsh, but the sources disagree on how harsh. One summary says a usurious contract is void as to principal and interest. FindLaw says it is void as to unpaid interest, and the borrower can recover twice the interest already paid. An Arkansas consumer attorney can tell you which applies to a specific loan.

Item Arkansas rule (as of September 2026)
Interest cap, most consumer loans 17% a year (Amendment 89, Section 3)
Rate when the contract names none 6% a year (§ 4-57-101)
Minimum or maximum loan amount Not set in the sources reviewed
Minimum or maximum term Not set in the sources reviewed
Storefront payday loans and rollovers All storefront operations shut down (Attorney General)

How loans above 17% still reach Arkansans

A 1978 Supreme Court case, Marquette National Bank v. First of Omaha, lets banks charge the rate their home state allows, wherever the borrower lives. Online lenders use this by partnering with an out-of-state bank that makes the loan on paper.

The gap is large. One online installment lender that works through partner banks advertised Arkansas loans of $500 to $5,000 at 129% to 195% APR. Its example: $3,000 at 160% over 12 months, in payments of $514.60. That comes to about $6,175 repaid.

The Arkansas Attorney General says the same about short-term lending: storefront payday loans in Arkansas are gone, but online payday lenders operating from outside the state are still reachable.

Who licenses these lenders is less clear

The Arkansas Securities Department licenses mortgage brokers, bankers, servicers and loan officers through NMLS. It does not cover consumer installment loans. Industry sites name the Arkansas State Bank Department as the installment regulator, but none of the official sources reviewed here confirm that or give a website, so verify it before relying on it.

The sources also say nothing about credit union payday-alternative loans or state assistance programs in Arkansas. A local credit union is the place to ask.

If you are closing on a house soon

An underwriter reads your bank statements line by line. A new loan deposit and recurring payments to an unfamiliar lender will draw a request for a letter of explanation. The monthly payment goes into your debt-to-income ratio, and at triple-digit APRs even a small loan carries a large payment.

If you already have one, ask your loan officer before closing whether paying it off, and documenting the payoff, would help your file. If you are only considering one, the 17% cap is your first check: any Arkansas offer above it comes through a bank partnership, and it will show up in underwriting.