Can you still get a car title loan in Montana? Not as the high-cost product it used to be. Montana repealed its Title Loan Act effective December 31, 2013. Any lender that takes your car title today has to fit inside a 36% annual interest cap.

A title loan is a short-term loan secured by your vehicle title, so the lender can take the car if you default. Montana has no license for that product anymore. A lender making one needs a general Montana consumer loan license, and it must follow that license's limits.

How the law got here

Montana voters approved Initiative 164 on November 2, 2010, with roughly three-quarters voting yes. According to Ballotpedia, some payday and title loans had carried effective rates up to 400% a year. The initiative capped them at 36%, starting January 1, 2011.

In 2013 the Legislature went further. House Bill 118 repealed sections 31-1-801 through 31-1-842, which made up the whole Title Loan Act. The state's Banking and Financial Institutions Division (BFID) says it "does not regulate" title lending as a separate licensed activity.

What a lender can charge you today

Title loans now fall under the Montana Consumer Loan Act. That is the same law behind installment loans in Montana. Under MCA 32-5-301, interest "may not exceed 36% a year." That cap excludes a closed list of pass-through fees, such as lien filing, appraisal and credit report fees. A licensee that overcharges has to give you double the excess.

Pawnshops are also closed as a workaround. MCA 31-1-401 bars a pawnbroker from taking a motor vehicle title unless it also holds a consumer loan or deferred deposit license.

Item Montana rule (state sources, as of September 2026)
Title-loan license None since December 31, 2013
Interest cap 36% a year, excluding listed third-party fees
Deferral or late fee Greater of $15 or 5% of the amount due, max $50. Late fee once per delinquency
Maximum loan amount Not set in the sources we reviewed
Term and rollovers No state rule found. One title lender's own page (September 18, 2026) says 30 days, renewable with a 10% principal paydown

Some comparison sites still list "25% per month" and a 31-day term. Those figures cite statute numbers from the repealed framework. They do not describe the law today.

Repossession, online lenders and what we could not confirm

The sources we reviewed do not spell out Montana's notice rules, right to cure, or whether surplus from a car sale comes back to you. Those questions go to BFID or a lawyer before you sign.

On online lenders, the BFID FAQ says anyone making a Montana consumer loan generally needs a state license through NMLS. So does any company that only services one by collecting your payments. Banks and credit unions are exempt. An unlicensed site charging more than 36% is a warning sign.

In May 2026 BFID previewed proposals for the 2027 session. They include a 10-day grace period on installment payments and clearer credit-life insurance disclosure. None is law yet.

Our sources do not cover credit union payday-alternative loans or named Montana assistance programs. Ask your own credit union what it offers.

If you are buying a house soon

Our sources for this page do not include the Fannie Mae, FHA or VA rules on this. Treat what follows as questions to put to your loan officer, not as the rule itself.

A title loan leaves a trail. Regular payments to a lender show up on the bank statements your underwriter reviews. An underwriter who spots them can ask you for a letter of explanation. Any monthly payment still open when you apply may be counted in your debt-to-income ratio.

Before you apply, ask your loan officer:

  • Will this loan count against my debt-to-income ratio?
  • Should I pay it off now, and what payoff proof do you need?
  • Will a large payoff pulled from savings raise new questions about my funds?