Payday Loans in Rhode Island: What Changes on January 1, 2027

Yes, but only through 2026. Licensed check cashers in Rhode Island can make payday loans, called deferred deposits, for a fee of up to 10% of the advance on a check of $500 or less. A 2025 law ends them on January 1, 2027.

Rhode Island's 10% Deferred Deposit Fee, Priced From $100 to $450

Worked out from Rhode Island law, not offers from lenders in our network; a lender can charge less.

Your check covers the advance plus the fee and can't top $500, so the most you can get at the full fee is about $454. The General Assembly put the cost at 260% APR when it voted to end these loans.

Deferred Deposit Rules Until December 31, 2026

• At least 13 days. The check casher can't deposit your check before a date at least 13 days after you sign.
• A written agreement. It shows the fee in dollars and as an APR and the deposit date, and you keep a copy. It can't give the check casher collateral.
• Three checks, $500 in all. One check casher and its affiliates can hold up to three of your checks at once, worth $500 or less together.
• One rollover. Pushing back the due date for another fee is allowed once.

What the 2025 Repeal Changes on January 1, 2027

Public Laws 2025, chapters 373 and 391, enacted July 1, 2025, take effect on January 1, 2027. From that date:

• The deferred deposit section, 19-14.4-5.1, and the 10% fee are repealed.
• Check cashers lose the exemption that let them make these loans without a lender or small loan license.
• A loan of $5,000 or less can't cost more than the small loan rates, and one that does generally can't be enforced in Rhode Island.
• No one may help a borrower get a loan above those rates by mail, phone or internet, even from outside the state.

For comparison, 3% a month on $300 for 14 days is $4.20, against a $30 fee today. If a check of yours will still be outstanding at the end of 2026, ask the check casher and DBR how it will be handled.

Rhode Island Small Loan Lenders: 3%, 2.5% or 2% a Month

Licensed small loan lenders can lend one borrower up to $5,000 in total. The cap is set by loan size, on the unpaid principal: 3% a month up to $300, 2.5% up to $800 and 2% up to $5,000, or 36%, 30% and 24% a year.

Worked out from Rhode Island law, not offers from lenders in our network; a lender can charge less.

• Up to 25 months on $1,000 or less and 60 months above that, in substantially equal installments.
• No other charges beyond items such as credit insurance and filing fees.
• A court can void a loan made in knowing violation, and the lender then collects nothing.

These caps bind lenders licensed by the Department of Business Regulation (DBR). Banks and credit unions don't need these licenses.

Three Steps While Rhode Island Payday Lending Winds Down

1. Decide whether you need weeks or months: up to $30 on a $300 deferred deposit, or about $94.56 a month for $1,000 over a year at 2% a month.
2. Submit one request through LendUp. Lenders in our network review it, and any offer shows the APR, payments and total cost before you sign.
3. Find the lender's Rhode Island license in NMLS before you sign.

Checking a DBR License and the "Rhode Island Licensed" Ad Line

1. Search by the company's legal name or NMLS number; DBR's license lookup points here.
2. Look for an active Rhode Island Check Casher, Small Loan Lender or Lender license.
3. Match the ad: ads aimed at Rhode Island must carry a line such as "Rhode Island Licensed Small Loan Lender."

Questions: DBR's Banking Division, 401-462-9503 (8:30 a.m. to 4 p.m. weekdays) or [email protected].

• Cheaper options first. DBR suggests a credit union, small loan company or community group, or asking creditors for new terms.
• Military families. Federal law caps most loans to active-duty servicemembers and covered family members at a 36% Military APR, fees included.

Common Questions

Official Sources

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