Loan Options in Vermont

Vermont sets an 18% annual interest cap for consumer loans under 9 V.S.A. § 41a. This blocks traditional payday lenders from operating here since their business model relies on triple-digit APRs. You won't find licensed storefront payday lenders in Vermont.

Installment loans are available through lenders licensed by the Vermont Department of Financial Regulation (DFR). Licensed lenders can charge rates above the general cap under specific statutes, but Vermont's framework keeps costs far below what you'd see in states with no rate limits. For specifics on what lenders can charge, see the Vermont Rates & Fees page.

If an online lender offers you payday-style loans at high APRs, they may not be properly licensed. Verify any lender through DFR before sharing personal or financial information.

Vermont offers some of the strongest consumer lending protections in the country. Here's what the law gives you:

• 18% annual usury cap (9 V.S.A. § 41a) - This ceiling blocks most predatory high-cost lending models from operating legally in Vermont. You're protected from triple-digit APR products.
• Lender licensing requirement - Any entity making consumer loans here must be licensed by DFR. That gives you a way to verify legitimacy before you apply. You can check a lender's license status through DFR.
• Vermont Consumer Protection Act (9 V.S.A. Chapter 63) - Misleading advertising and hidden fees are prohibited under this law. The Vermont Attorney General's office can take action against lenders who violate it.
• Right to file complaints with DFR - If a lender engages in abusive collection tactics, charges unauthorized fees, or operates without a license, you can file a complaint directly with DFR.

Before sharing personal information with any lender, review the LendUp scams and safety guide and confirm the lender holds a valid Vermont license.