Understanding payday vs small loans Oklahoma borrowers now face means seeing exactly what the 2020 Small Lenders Act replaced — and why the change matters.
Quick answer: The old Oklahoma payday loan was a single lump-sum payment due on your next payday, up to $500, often around 390% APR. The new small loan is a fully amortized installment loan up to $1,500 over 60 days to 12 months, capped at 17% per month with ability-to-repay checks — no more lump sums, no rollovers.
The old payday model (pre-2020)
- Structure: single lump-sum payment due on your next payday.
- Amount: up to $500.
- Cost: statutory fees producing an average around 390% APR.
- Problem: many borrowers couldn’t repay the lump sum and cycled repeatedly.
The new small loan (2020 onward)
- Structure: fully amortized installments over 60 days to 12 months.
- Amount: up to $1,500 aggregate principal.
- Cost: up to 17% per month, roughly 200% APR annualized on short terms.
- Protections: ability-to-repay check, 20%-of-income cap, right of rescission, no rollovers, no prepayment penalty.
What it means in practice
You can borrow more and repay over time, but the loan is still expensive. The structural changes reduce the lump-sum trap; they don’t make small loans cheap. Credit-union options remain far less costly.
FAQ
Can I still get an old-style payday loan in Oklahoma?
No — single-payment payday loans ended August 1, 2020.
Is the new small loan cheaper?
The APR is lower than the old payday average, and the installment structure is safer, but it’s still high-cost credit.
Which is better for borrowers?
The installment structure with ability-to-repay checks is generally more borrower-friendly than the old lump-sum model.
Educational content, not financial advice. Always verify a lender is licensed by the Oklahoma Department of Consumer Credit before borrowing.