The Oklahoma Small Lenders Act (SB 720), signed by Governor Stitt in April 2019 and effective August 1, 2020, is the single statute controlling licensed small-dollar lending in the state today.
Quick answer: The Oklahoma Small Lenders Act (Title 59, §§ 3150–3150.27) governs licensed small loans: unsecured, $1,500 max aggregate principal, terms of 60 days to 12 months, fully amortized equal payments, up to 17% interest per month, no prepayment penalty, and a right to cancel by the next business day.
Loan structure requirements
- Unsecured: no collateral required.
- Term: at least 60 days, no more than 12 months.
- Fully amortized: repaid in substantially equal periodic payments.
- No prepayment penalty: paying early always saves you interest.
The cost and amount caps
A licensee may charge a periodic interest rate up to 17% per month, and total outstanding principal across all licensed small lenders can’t exceed $1,500 per borrower — a figure adjusted annually for inflation. Lenders verify your outstanding balances through a state-approved database.
The borrower protections
- Ability-to-repay check: the lender must document your income.
- 20%-of-income rule: monthly payments can’t exceed 20% of your gross monthly income.
- Right of rescission: cancel by close of business the next business day.
- Credit counseling: access to approved counselors upon default.
FAQ
What is the interest cap under the Small Lenders Act?
Up to 17% per month as a periodic interest rate.
Can a small loan be rolled over?
No — the amortized installment structure eliminates rollovers entirely.
Can I cancel a small loan after signing?
Yes — you have a right of rescission until the close of business the next business day.
Educational content, not financial advice. Always verify a lender is licensed by the Oklahoma Department of Consumer Credit before borrowing.