Relating to increasing the interest rate of certain consumer loans.

SB 1906 would lower the maximum annual interest rates for unsecured consumer loans in Texas based on loan amount. Specifically, it would reduce caps to 30% for loans up to $500 (from 36%), 24% for loans between $500 and $1,050 (from 30%), and 18% for loans between $1,050 and $2,500 (from 24%). This directly affects lenders offering such loans and borrowers taking them out, particularly for smaller personal loans. The new rates would apply only to loans made on or after September 1, 2025, while existing loans remain under prior rate limits.