The Short Term Loan
Mo. Rev. Stat. § 408.500 — unsecured loans of five hundred dollars or less, renewed no more than six times
Who is covered. Lenders other than banks, trust companies, credit unions and savings institutions that make unsecured loans of five hundred dollars or less are licensed by the director of the division of finance.
Renewals. The lender renews the loan on the borrower's written request and payment of the interest and fees then due, but with each renewal the borrower reduces the principal by not less than five percent of the original amount. No loan may be renewed more than six times.
An unlawful fee. A contract with a fee or charge in violation of the section, other than a clerical error, is void, and a person who imposes one is guilty of a class A misdemeanor.
Licensing, the disclosures the lender owes, and what happens when a check is returned are set out in other parts of the law that are not on this page. Whether a particular loan broke these limits is a question for the state's financial regulator or a licensed Missouri attorney.
Sources for this section (1)
- Mo. Rev. Stat. § 408.500 — Unsecured loans of five hundred dollars or less
Legal information, not legal advice. Verified as of October 2026. Applying it to a particular situation is the work of a licensed Missouri attorney.