In Louisiana, home to the culturally eclectic town of New Orleans, payday loan lenders are allowed to give out cash advances whose term periods may not exceed 30 days and are required to charge the borrower less than 16.75 percent of the original value of the loan as an interest rate. There, people looking to take out a payday loan cannot borrow more than $350, and can only legally obtain these loans from licensed lenders.

In the Lone Star State - famous for Stetson hats and big appetites - payday loan laws are a little bit more flexible than in Louisiana. Individuals looking to take out a loan can expect to have to pay it back within seven days from the loan's origination date.

There is also no maximum amount of money that can be given out for payday loans - borrowers have the option to take out a loan in any amount, provided they'll be able to repay it within the term.In Texas, perhaps with the least government regulated payday loan laws in the country, there is no specific law requiring lenders to charge a flat interest rate.