Vermont lending rules
Vermont has 40 Census places covered on Loansloth, with a combined estimated population of 155,375. Personal-loan terms in Vermont are set by licensed lenders under state law; the sourced rules below apply to every borrower in the state.
Key rules for borrowers in Vermont
| Rule | Detail | Source |
|---|---|---|
| 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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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.