Anyone looking at installment loans in Oklahoma City usually wants to know two things: what the monthly payment will be, and what the loan will cost in total. An installment loan is repaid in scheduled payments over a set time. Oklahoma’s small loan, created by the Small Lenders Act, is the high-cost version of it. This guide explains the rules, shows real dollar examples and points to cheaper choices.
Quick answer: An installment loan is repaid in equal scheduled payments, and in Oklahoma City the small loan under the Small Lenders Act is the main high-cost version. It can charge up to 17% a month (about 204% a year), so a $500 loan over 60 days costs about $630.83 in total. Credit unions and banks usually cost far less, so compare them first.
What an installment loan is
With an installment loan you borrow a set amount and repay it in regular payments, usually monthly. Each payment covers some interest and some principal, so the balance goes down over time. When the last payment is made, the loan is over.
That is different from a loan due all at once on your next payday. It is also different from a credit card, where the balance can stay open for years. Installment loans come from many sources, including credit unions, banks, online lenders and licensed small lenders. The price varies a lot from one source to the next.
How small loans replaced payday loans in Oklahoma
Oklahoma’s Small Lenders Act (Title 59 O.S. §§ 3150.1-3150.27) created the “small loan.” Deferred deposit (payday) lender licenses expired on August 1, 2020, and no new payday loans have been made since. Small lenders now hold a license from the Oklahoma Department of Consumer Credit (DOCC), which regulates them.
So when people in OKC search for a payday loan today, the product they will actually find is a small loan. It looks different from the old model, but it can still be expensive. You can read more about the change in our guide on old payday loans versus Oklahoma’s small loans.
The rules for small loans
These are the main rules a licensed small lender must follow:
- Amount: total principal across all small lenders is capped at $1,824.60. The base amount is adjusted for inflation about every two years, and this figure has been in effect since July 1, 2025.
- Term: at least 60 days and no more than 12 months.
- Rate: up to 17% a month on the outstanding balance, which is roughly 204% a year.
- Payments: equal, fully amortized payments with no balloon payment at the end.
- Security: small loans are unsecured, so a lender cannot take your car title as collateral.
For more on the cap, see how much you can borrow with a small loan in Oklahoma.
Worked examples: $500 and $1,500 over 60 days
Numbers make the cost clear. Here are two small loans at 17% a month, repaid in two monthly payments over 60 days:
- $500 loan: about $315.41 a month, about $630.83 in total, so about $130.83 in interest.
- $1,500 loan: about $946.24 a month, about $1,892.49 in total, so about $392.49 in interest.
The $500 loan costs about 26 cents for every dollar borrowed in just two months. Ask yourself whether you can make two payments of that size on top of rent, food and utilities. If the answer is no, look at other options before you apply.
A longer term lowers the payment, not the cost
Stretching a small loan to 12 months makes each payment smaller, but you pay interest for longer. A $1,000 small loan at 17% a month over 12 months works out to about $200 a month, or roughly $2,400 in total. That is about $1,400 in interest on a $1,000 loan.
For comparison, here is an illustration of a $1,000 loan from a credit union or bank at 24% a year over 12 months. The payment would be about $94.56 a month, about $1,134.72 in total, and about $134.72 in interest. This is only an example, since real offers depend on your credit and the lender. It shows why the gap between lender types matters.
The 20% income test
A small lender may not make a loan if the payments due in any month would be more than 20% of your gross monthly income. Gross means before taxes.
Say you earn $2,500 a month before taxes. Your scheduled small loan payments could not exceed $500 a month. The $946.24 payment from the $1,500 example above would need gross income of about $4,731 a month. The test limits the size of the loan, but it does not tell you the loan fits your budget. Your real expenses are the better guide.
Other installment loans: credit unions, banks and online lenders
Larger or lower-cost installment loans follow different rules than small loans. Terms, fees and rates vary by lender, so ask for the written Truth in Lending disclosure and compare the APR, the payment and the total cost. Our guide to APR versus interest rate explains how to read those numbers.
Federal credit unions also offer payday alternative loans. These charge at most 28% interest plus an application fee of at most $20. Membership rules differ at each credit union, so check whether you qualify. See Oklahoma City credit unions versus small lenders for the cost gap, or personal loans in Oklahoma City for larger amounts.
Fixed payments help, but they do not make a loan cheap
Equal payments are easier to plan around than one lump sum. You know the date and the amount, and the loan has an end date. That is a real benefit.
But a predictable payment can still be an expensive payment. Oil and gas work in the OKC area can bring pay swings when prices or rig counts drop, and hourly jobs can lose hours in a slow month. Before you borrow, picture your worst month and ask whether you could still make the payment.
Early payoff and the right to cancel
You may repay a small loan early, in whole or in part, at any time without a penalty. Interest stops on the part you repay, so extra payments save money.
A small loan must also include a right to cancel. The lender must honor it until the close of business on the day after the money is paid out. If the lender is closed that day, the deadline moves to the next day it is open. You cancel by returning the money. Read your contract so you know exactly how this works for your loan.
Check the license before you apply
Licensed small lenders are listed with the DOCC, which also takes consumer complaints. You can search at oklahoma.gov/okdocc. Small lenders must also check a private database approved by the DOCC to see your outstanding small loans.
Many online lenders that advertise to Oklahomans say they are owned by a tribe and are not licensed by the DOCC. Do not assume any lender is licensed. Check first, and walk away if you cannot confirm it.
Service members and Tinker families
The Military Lending Act caps the cost of most consumer loans at 36% MAPR for active-duty service members, including active Guard and Reserve, and their covered dependents. MAPR is broader than APR and includes most fees. Because small loans can run near 204% a year, a covered borrower cannot get one at that rate. Veterans, retirees and civilian workers at Tinker Air Force Base are not covered.
Airmen and their families can ask about emergency help from the Air Force Aid Society through the base. Our guide for Tinker AFB families and local energy and aviation workers has more.
Cheaper options to try first
If the money is for a bill, help may exist that costs nothing:
- 2-1-1: Heartline runs 2-1-1 for Oklahoma City and western Oklahoma. It is free, confidential and open 24/7. Dial 2-1-1 or text your ZIP code to 898-211.
- OG&E: most of Oklahoma City is served by OG&E, which offers payment plans to qualified customers and other assistance. See oge.com/assistance.
- Your lender or landlord: ask for a payment plan or a later due date before you borrow.
Credit unions may also offer small-dollar loans at much lower cost than a small lender.
What to check before you sign
- The lender’s DOCC license.
- The monthly payment, the number of payments and the total you will repay.
- That the payment fits your budget, not just the 20% test.
- That early payoff has no penalty.
- The cancellation deadline in the contract.
- At least one lower-cost offer, such as from a credit union.
Our step-by-step guide to small loans in Oklahoma walks through the full process. You can also learn about the Truth in Lending disclosure at consumerfinance.gov.
Frequently asked questions
Not exactly. A small loan is one kind of installment loan, limited to $1,824.60 in total principal across all small lenders. Other installment loans from banks, credit unions or online lenders can be larger and follow different rules.
No. Payday lender licenses expired on August 1, 2020, and the Small Lender license replaced them. Today’s product is the small loan.
Up to 17% a month on the outstanding balance. A $500 loan over 60 days costs about $130.83 in interest, or about $630.83 in total.
Yes. You can repay in whole or in part at any time without a penalty, and interest stops on the amount you repay.
Yes, for a short time. The lender must honor your right to cancel until the close of business on the day after the money is paid out. You cancel by returning the money.
No. Small loans are unsecured and cannot be secured by your vehicle. Read about the difference in our guide to title loans in Oklahoma City.
Search the Oklahoma Department of Consumer Credit at oklahoma.gov/okdocc. If you cannot find the lender, do not borrow from it.
This article is educational and is not financial or legal advice. Before you borrow, confirm the lender is licensed with the Oklahoma Department of Consumer Credit (DOCC), and read the fee disclosure in full.