Frequently Asked Questions

No. There is absolutely no penalty. You may pay off the loan at any time!

Your loan payments will be directly sent to Texas Royalty Loans from the producing well operator. Your monthly royalty income payment represents your monthly loan payment. We will release all liens associated with your loan when the balance is paid in full.

Texas Royalty Loans will pay the ad valorem taxes each January during the term of your loan. The ad valorem taxes are paid by Texas Royalty Loans on your behalf. The are reimbursed from the monthly royalty check.

Once your loan is paid in full, Texas Royalty Loans will re-direct the royalty payments back to you.

Your Texas Royalty Loan is a collateral loan that is secured by your mineral ownership interest; the interest charge is generally calculated on a monthly basis and determined by the average daily balance of your loan amount. Interest rates are usually 10%. Know that interest rates can vary due to the rate environment. We are glad to answer current interest rate questions at any time.

Your loan amount will be determined primarily by two factors: the quality of the producing well and the amount of your monthly royalty payment.

Yes. The minimum loan amount is $15,000. In most situations, to be eligible for a loan with Texas Royalty Loans, your monthly royalty check from the production company should be a minimum of $500.

Generally, loan terms range from five to seven years. Your loan payments will be calculated based on your monthly royalty check.

A copy of the two most recent monthly royalty check stubs or statements will start the process.

Your producing mineral interest is your credit. We do not factor your personal credit standing in our loan approval process.