Personalloaner

Vermont lending rules

Personalloaner covers 40 Census places in Vermont, which together hold an estimated 155,375 people. Licensed lenders set personal-loan terms here under Vermont 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 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

Places we cover in Vermont

The Census Bureau counts 40 places in Vermont, 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 Vermont?
The answer turns on the product and on which statute applies to it. This page's table sets out Vermont's usury cap and licensing rules, and each row carries its publisher and a link to the primary source.
What is Vermont'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 Vermont's current position.
How do I know a lender is licensed in Vermont?
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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