Loan Rates and Fees in New York

New York does not license payday lenders. The criminal usury cap of 25% per year makes the triple-digit fee structures payday lenders use in other states illegal here.

For installment loan costs, see below.

Licensed lenders under New York Banking Law Article 9 use a declining-balance interest model - interest accrues only on your remaining principal - capped at 25% per year on balances up to $25,000.

Licensed lenders may not charge a separate origination fee; all costs must be built into the interest rate within the cap above.

On a $1,000 loan at 25% annual interest for 12 months with equal monthly payments, you'd repay approximately $1,136 total - about $136 in interest.

• Refinancing restarts interest on the new balance - compare your remaining balance to the new loan's total of payments before you agree.
• Returned payment fee (labeled "NSF fee" or "dishonored check fee" on your agreement) is capped at $20.
• Late fees and grace period: New York does not set a specific statutory cap or grace period for late fees on licensed-lender installment loans - ask the lender for the exact amount and grace period before you sign.
• You can prepay in full at any time with no penalty - interest stops accruing on the date you pay off the balance. See installment loans in New York for repayment details.

If an offer exceeds these limits, verify with the New York Department of Financial Services (DFS).

• Returned payment fee: can't exceed $20 per failed attempt.
• Total of payments: the single most important number - add up every scheduled payment to confirm it matches what the agreement discloses.
• Military households: if you or your spouse are active-duty, the all-in cost can't exceed 36% MAPR under federal law - compare to the APR on your offer.