Loan Rates and Fees in Rhode Island
Page last reviewed: March 27, 2026 · Reviewed for accuracy by LendUp
Payday Loan Costs in Rhode Island
Rhode Island licenses check cashers to offer deferred-deposit (payday-style) loans under a separate statute from its small-loan rate caps. The maximum fee is 10% of the amount advanced, with a minimum term of 13 days and a maximum loan amount of $500.
On a $300 loan held for 14 days with a 10% fee, you would pay $30 in fees for a total repayment of $330. That is roughly 261% APR on a 14-day loan - federal law requires lenders to show you this rate before you sign.
- One extension is allowed per loan - you will pay an additional fee for the extension.
- Returned-payment (NSF) fee: no separately stated state cap - ask the lender for the exact amount before you sign, and verify with the Rhode Island DBR consumer page.
- No statewide database fee applies.
If an offer exceeds these limits, verify with the Rhode Island Department of Business Regulation.
Installment Loan Costs in Rhode Island
Licensed small-loan lenders in Rhode Island may lend up to $5,000 in the aggregate to one borrower and charge interest on the unpaid balance using a tiered monthly rate - the rate drops as your balance falls through each tier.
| Unpaid Balance | Maximum Monthly Rate | Annualized |
|---|---|---|
| First $300 | 3% | 36% |
| $300.01 – $800 | 2.5% | 30% |
| Above $800 | 2% | 24% |
No origination fee, service fee, or other upfront charge is permitted on top of these rates, except credit insurance and lawful filing fees - the tiered schedule is the lender's primary allowed compensation.
On a $1,000 loan repaid in 12 equal monthly installments, first-month interest is roughly $25.50 (3% on the first $300 + 2.5% on the next $500 + 2% on the remaining $200), with total interest over the full term approximately $167, for a total repayment of about $1,167 as the balance declines.
- 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: same rule as payday - no separately stated state cap; ask the lender for the exact amount before you sign.
- Late fees: no specific cap is stated in the publicly available statute text - confirm the amount with the lender and the Rhode Island Department of Business Regulation before you sign.
- You can pay off early with no penalty - interest stops accruing on the date you pay, so your total cost drops. See Installment loans in Rhode Island for repayment details.
Maximum term: 25 months for loans of $1,000 or less, 60 months for loans over $1,000 up to $5,000. If an offer exceeds these limits, verify with the Rhode Island Department of Business Regulation.
What to Check on Your Offer
- Fee: should not exceed 10% of the amount advanced.
- Loan amount: should not exceed $500.
- Term: at least 13 days.
- Interest rate: should not exceed 3% per month on the first $300, 2.5% on $300.01–$800, and 2% above $800.
- Origination or service fees: should not appear - Rhode Island does not allow upfront fees on small loans (except credit insurance and lawful filing fees).
- Late fee: no state cap confirmed - ask the lender for the exact amount before you sign.
- Prepayment penalty: should not appear - you can pay early and interest stops accruing.
- Total of payments: the single most important number on your agreement - this is what you'll actually repay over the full term, including all interest.
- If you or your spouse are active-duty military, federal law caps most loan costs at 36% APR - confirm the lender is applying this cap.
Official Sources
- Rhode Island Small Loan Statute (Title 19, Chapter 14.2)
- Rhode Island DBR - Consumer Resources (Payday Loan Rules)
- License Lookup Directory
LendUp is not a lender. We provide information so you can make informed decisions.
Rules can change - confirm with the Rhode Island Department of Business Regulation if an offer doesn't match what's shown here.