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State rules

Vermont lending rules

Vermont has 40 Census places covered on EmergencyLoaning, with a combined estimated population of 155,375. Emergency-loan terms in Vermont are set by licensed lenders under state law; the sourced rules below apply to every borrower in the state.

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

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

Key rules for borrowers in Vermont

RuleDetailSource
Maximum legal interest rate (usury cap) 12% per annum general legal rate; 18% permitted for certain single-payment loans by regulated lenders (9 V.S.A. § 41a)
Source says: the rate of interest or the sum allowed for forbearance or use of money shall be 12 percent per annum computed by the actuarial method		 Vermont General Assembly (Vermont Statutes Online)
as of 2026-09-16
Payday lending status Prohibited — payday loans (postdated check lending) are explicitly banned in Vermont
Source says: Payday loans (loans contingent on a postdated payment instrument) are explicitly banned.		 Vermont Attorney General
as of 2026-09-16
Small-loan / installment lender licensing Lender license required from the Commissioner (8 V.S.A. ch. 73, § 2201)
Source says: Without first obtaining a license under this chapter from the Commissioner, a person shall not		 Vermont General Assembly (Vermont Statutes Online)
as of 2026-09-16
State lending regulator Vermont Department of Financial Regulation (DFR), Banking Division
Source says: The Banking Division regulates the below listed non-depository financial services.		 Vermont Department of Financial Regulation (DFR)
as of 2026-09-16

Cities in Vermont

We cover 40 Census places in Vermont.

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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 Vermont?
It depends on the product and the statute that governs it. The sourced table on this page lists Vermont's usury cap and the licensing rules, each with its publisher and a link to the primary source.
Are payday loans legal in Vermont?
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 Vermont?
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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