Personalloaner

Connecticut lending rules

Personalloaner covers 29 Census places in Connecticut, which together hold an estimated 1,364,573 people. Licensed lenders set personal-loan terms here under Connecticut law, and the sourced rules below reach every borrower in the state.

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

Compare loan offers Run the numbers first

How we get paid: if you apply through the link above, a lending partner may send us a referral fee. It never changes the rate you are offered or what we publish. We are not a lender and we do not process applications. The lowest rates are only available to the most qualified applicants. Full disclosure.

Key rules for borrowers in Connecticut

RuleDetailSource
Maximum legal interest rate (usury cap) 12% per annum (consumer loans; statutory exceptions apply, e.g., banks, credit unions, small loan licensees)
Source says: "charge, demand, accept or make any agreement to receive therefor interest at a rate greater than twelve per cent per annum".		 Connecticut General Assembly — C.G.S. § 37-4
as of 2026-09-16
Payday lending status Not permitted — payday loans (small loans at more than 12% APR) are void and unenforceable unless made by exempt persons; licensed small loan companies may charge up to 36% APR
Source says: "Connecticut Banking Law considers such loans as void and unenforceable"; "Small Loan licensees can charge up to 36% annual percentage rate (APR)".		 Connecticut Department of Banking
as of 2026-09-16
Small-loan / installment lender licensing Small loan license required for loans of $50,000 or less with an APR greater than 12% (Small Loan Lending and Related Activities Act, C.G.S. §§ 36a-555 to 36a-573)
Source says: "Without having first obtained a small loan license from the commissioner pursuant to section 36a-565, no person shall".		 Connecticut General Assembly — C.G.S. § 36a-556 (2026 Supplement)
as of 2026-09-16
State lending regulator Connecticut Department of Banking
Source says: "The Department of Banking considers payday loan companies as unlicensed small loan lenders".		 Connecticut Department of Banking
as of 2026-09-16
Small-loan APR caps (§ 36a-558(d)) Loans under $5,000: lesser of 36% APR or the Military Lending Act rate cap; loans $5,000–$50,000: 25% APR
Source says: "an APR that exceeds the lesser of thirty-six per cent"; "an APR that exceeds twenty-five per cent".		 Connecticut General Assembly — C.G.S. § 36a-558(d) (2026 Supplement)
as of 2026-09-16

Places we cover in Connecticut

The Census Bureau counts 29 places in Connecticut, and the largest are linked below.

Compare personal loan offers Run the numbers first

How we get paid: if you apply through the link above, a lending partner may send us a referral fee. It never changes the rate you are offered or what we publish. We are not a lender and we do not process applications. The lowest rates are only available to the most qualified applicants. Full disclosure.

Common questions

How high can interest rates legally go in Connecticut?
The answer turns on the product and on which statute applies to it. This page's table sets out Connecticut's usury cap and licensing rules, and each row carries its publisher and a link to the primary source.
What is Connecticut's position on payday lending?
Each state handles payday lending on its own: some permit it, some cap it, some prohibit it. The sourced row on this page gives Connecticut's current position.
How do I know a lender is licensed in Connecticut?
Consumer lenders generally need a licence issued by the state regulator identified on this page. Verify that licence with the regulator before you commit to anything.

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