House Bill No. 513 enacts the Louisiana Consumer Alternative Installment Loan Act, establishing a new framework for consumer loans in Louisiana. This legislation introduces definitions for key terms such as "applicable interest" and "precomputed consumer loan," and mandates that any entity engaging in consumer lending must possess a valid license under the Louisiana Consumer Credit Law. The bill outlines the conditions under which licensed lenders can operate, including options for interest rates on precomputed loans and the administration of these loans by the commissioner of financial institutions.

Additionally, the bill specifies the calculation of interest, repayment terms, and conditions for late payment charges. It allows licensed lenders to charge a monthly finance charge on loans of $5,500 or less, capped at an annual percentage rate of 59%. The legislation also includes consumer protections, such as prohibiting lenders from requiring repayment through preauthorized electronic transfers and mandating specific disclosures in loan agreements. Furthermore, it establishes a process for adjusting the maximum loan size annually based on the Consumer Price Index. Overall, the bill aims to regulate consumer lending practices while providing clear guidelines for both lenders and borrowers.