Installment Loans in Vermont

Steps

1. Submit one request through LendUp or contact a licensed lender directly.
2. Gather what you'll need: government-issued ID, proof of income (pay stubs, benefit letters, or bank statements), and your bank account details for deposit and repayment.
3. Review the offer: confirm the APR, the full payment schedule, and the total amount you'll repay over the life of the loan.
4. Before you sign, check the DFR's Unlicensed Lender List and verify the lender in NMLS Consumer Access. Save a copy of the signed agreement.

What to expect

• Credit check: You may see a soft check (no score impact) for prequalification and a hard check (small score impact) if you accept. Ask before you agree.
• Monthly installments required: Vermont law requires licensed lender loan contracts to be repayable in monthly installments. If a lender proposes a lump-sum repayment or a balloon payment structure, that may not comply with state law.
• Total cost vs. monthly payment: Ask for the total you'll repay over the full term. Vermont's rate limits mean your options should be less expensive than in many other states - but still compare across at least two offers.
• Automatic payments: Most installment loans use automatic withdrawals. If your paydays don't match the due dates, ask whether the lender can adjust the schedule to avoid overdraft fees.

Before sharing your Social Security number or bank details, confirm the lender is licensed by the DFR.

1. First, check the DFR's Unlicensed Lender List. If the company is already flagged, do not proceed.
2. Search NMLS Consumer Access by the company's NMLS number or legal name. Confirm Vermont is listed with a Lender license.
3. Confirm the company name on the license matches the name on your loan documents. Each lender location - including out-of-state offices lending into Vermont - is required to be separately licensed.
4. If you can't find the lender, call DFR at (802) 828-3307 or email [email protected] before you proceed.

If a lender can't be verified, stop immediately. Under Vermont's 2012 law, unlicensed lending is an unfair and deceptive act in commerce - a direct violation of the Consumer Protection Act. The Attorney General's office has held not just lenders but also payment processors and other third parties liable for assisting unlicensed lending.

To report an unlicensed lender, email [email protected]. To file a general complaint, visit the DFR complaint page or call (802) 828-3307. You can also file with the CFPB.

LendUp works to present offers from providers that meet our marketplace requirements, but you should always verify the lender's current Vermont license before accepting any offer.

Your rights in Vermont

• Rate caps protect you: Vermont limits interest rates on consumer loans made by licensed lenders. The exact caps depend on the loan type and amount. For specifics, see our rates and fees page. If any lender quotes you a rate that seems high, compare it against the state limits before signing.
• No confessions of judgment: Vermont law prohibits a lender from including a confession of judgment or power of attorney in a loan contract that would allow legal action against you without your knowledge. Any such provision in a loan document is a red flag.
• Third parties that help illegal lenders are also liable: Vermont's Consumer Protection Act applies not just to unlicensed lenders but also to anyone who provides "substantial assistance" to an unlicensed lender - including payment processors. This gives Vermont consumers broader recourse than most states.

Walk away if

• An upfront fee is required before you receive any money.
• The lender shows only the monthly payment and won't state the total you'll repay in writing.
• You're pressured to sign immediately or told you can't review the agreement on your own time.
• The lender appears on Vermont's Unlicensed Lender List or can't be found in NMLS Consumer Access.
• The APR seems unusually high for Vermont - the state's rate limits are stricter than most. Verify the lender's license.
• The lender describes the product as a "payday loan" or asks you to agree to hold a check for later deposit - both are prohibited in Vermont.
• The loan contract includes a confession of judgment or power of attorney - these are not permitted under Vermont law.

If payments look tight, review red flags on scams and safety. Vermont's Attorney General also recommends the Working Bridges employer income-advance program as an alternative to high-cost borrowing.