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State rules

New York lending rules

New York has 595 Census places covered on EmergencyLoaning, with a combined estimated population of 12,443,462. Emergency-loan terms in New York are set by licensed lenders under state law; the sourced rules below apply to every borrower in the state.

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Advertising disclosure: EmergencyLoaning may receive a referral fee if you apply through the link above. That fee does not change the rate you are offered, and it does not change our content. We are not a lender. The lowest rates are only available to the most qualified applicants. Read the full disclosure.

  • Sourced figures
  • As-of dates shown
  • Not advice

By the EmergencyLoaning Editorial Team · Last updated 2026-09-16

Key rules for borrowers in New York

RuleDetailSource
Maximum legal interest rate (usury cap) 16% per annum maximum civil rate (Banking Law 14-a; General Obligations Law 5-501)
Source says: "The maximum rate of interest provided for in section 5-501 of the general obligations law shall be sixteen per centum per annum."		 New York State Senate (Open Legislation)
as of 2026-09-16
Payday lending status Illegal in New York State, in person, by telephone, or over the Internet
Source says: "Payday loans are illegal in New York State."		 New York State Department of Financial Services
as of 2026-09-16
Small-loan / installment lender licensing Licensed Lender license required (Banking Law Article 9, sections 340-361); administered via NMLS
Source says: "The Department of Financial Services uses the Nationwide Multistate Licensing System and Registry (NMLS) to manage the Licensed Lender License."		 New York State Department of Financial Services
as of 2026-09-16
State lending regulator New York State Department of Financial Services (DFS)
Source says: "Notify the Department of Financial Services at (800) 342-3736 if you believe payday loans are being made in New York"		 New York State Department of Financial Services
as of 2026-09-16
Criminal usury in the second degree (Penal Law 190.40) Interest rate exceeding 25% per annum; class E felony
Source says: "at a rate exceeding twenty-five per centum per annum or the equivalent rate for a longer or shorter period"		 New York State Senate (Open Legislation)
as of 2026-09-16

Cities in New York

We cover 595 Census places in New York.

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Advertising disclosure: EmergencyLoaning may receive a referral fee if you apply through the link above. That fee does not change the rate you are offered, and it does not change our content. We are not a lender. The lowest rates are only available to the most qualified applicants. Read the full disclosure.

Frequently asked questions

What interest rate can a lender charge in New York?
It depends on the product and the statute that governs it. The sourced table on this page lists New York's usury cap and the licensing rules, each with its publisher and a link to the primary source.
Are payday loans legal in New York?
Payday lending is regulated state by state; some states permit it, some cap it, and some prohibit it outright. See the sourced figure on this page for the current position.
Do I need a license to lend money in New York?
Most consumer lenders must be licensed by the state regulator named on this page. You can verify a lender's license with that regulator before you sign anything.

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