Louisiana OFI Sets Loan Principal Balance Limits for 2025-2026
Summary
The Louisiana Office of Financial Institutions (OFI) has published the maximum outstanding principal balance limits for deferred presentment transactions and small loans for the 2025-2026 period. These limits, set at $720.00 for deferred presentment and $360.00 for small loans, are effective from September 1, 2025, to August 31, 2026.
What changed
The Louisiana Office of Financial Institutions (OFI) has announced the updated maximum outstanding principal balance limits for deferred presentment transactions and small loans, effective from September 1, 2025, to August 31, 2026. These new limits are $720.00 for deferred presentment transactions and $360.00 for small loans. This update is mandated by an amendment to LSA-R.S. 9:3578.4(D), requiring OFI to publish these figures annually based on the Consumer Price Index.
Financial institutions operating in Louisiana offering deferred presentment transactions or small loans must ensure their principal balance limits do not exceed these published amounts for the specified period. Compliance with these updated limits is required by September 1, 2025. Failure to adhere to these limits may result in regulatory action by OFI.
What to do next
- Update internal systems and policies to reflect the new maximum principal balance limits of $720.00 for deferred presentment transactions and $360.00 for small loans.
- Ensure all new deferred presentment transactions and small loans issued between September 1, 2025, and August 31, 2026, adhere to these principal balance limits.
- Review loan origination processes to guarantee compliance with the updated limits before the September 1, 2025, effective date.
Source document (simplified)
LSA-R.S. 9:3578.4(D) was amended during the 2025 Regular Legislative Session to require the Louisiana Office of Financial Institutions (OFI) to publish annually a new maximum outstanding principal balance for a deferred presentment transaction, as defined in R.S. 9:3578.3(3) and for a small loan, as defined in R.S. 9:3578.3(7), on OFI’s website on or before September 1 st of each year. The maximum outstanding principal balance is calculated by applying the 12-month increase or decrease in July of the United States Bureau of Labor Statistics Consumer Price Index for All Urban Consumers for the previous calendar year to the previous maximum principal balance and rounding the amount up to the nearest ten-dollar increment.
| Year | Deferred Presentment
Transaction | Small Loan |
| September 1, 2025 to August 31, 2026 | $720.00 | $360.00 |
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