Loan Options in New York

New York has some of the strictest small-dollar lending laws in the country. Traditional payday loans are illegal here - the state caps interest at 16% annually under civil law and treats anything over 25% as criminal usury.

Licensed installment loans are allowed. Lenders must hold a license under Banking Law Article 9 and follow DFS rate caps. See the New York installment loans and rates & fees pages for what licensed lenders can charge.

Watch out for online companies claiming to offer "payday loans in New York" or saying they're exempt from state law through tribal affiliation or offshore registration. DFS has taken enforcement action against unlicensed lenders operating illegally. If high-cost short-term loans aren't an option, explore alternatives available in New York.

• Strict usury caps (16% civil / 25% criminal). These caps prevent the triple-digit APRs you'll find in states that allow payday lending. Any lender charging above these thresholds is breaking the law - you can report them and may be able to void the debt.
• DFS licensing requirement for consumer lenders. Lenders making loans of $25,000 or less must hold a DFS license under Banking Law Article 9. You can verify any lender's license through the DFS portal before you borrow.
• Active state enforcement against illegal online lenders. DFS has issued cease-and-desist orders and reached settlements with unlicensed online and tribal-affiliated lenders targeting New York residents. The state works to shut down illegal operators, but you still need to verify before sharing personal information.
• Right to file complaints with DFS. If a lender charges illegal rates, harasses you, or operates without a license, file a complaint directly with DFS. The agency investigates and can take enforcement action.

Before sharing personal information with any lender - especially one you found online - review the LendUp scams and safety guide and confirm the company's license status through DFS.