Personalloaner

New York lending rules

Personalloaner covers 595 Census places in New York, which together hold an estimated 12,443,462 people. Licensed lenders set personal-loan terms here under New York 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 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

Places we cover in New York

The Census Bureau counts 595 places in New York, 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 New York?
The answer turns on the product and on which statute applies to it. This page's table sets out New York's usury cap and licensing rules, and each row carries its publisher and a link to the primary source.
What is New York'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 New York's current position.
How do I know a lender is licensed in New York?
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.

Related