State reference · VT
Vermont lending rules
Vermont has 40 Census places covered on Paydayloaning, with a combined estimated population of 155,375. Payday and small-loan terms in Vermont are set by licensed lenders under state law; the sourced rules below apply to every borrower in the state.
Advertising disclosure: Paydayloaning 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.
The verdict
Prohibited
Source: Vermont Attorney General · as of 2026-09-16
- Licensing
- Lender license required from the Commissioner
- Vermont General Assembly (Vermont Statutes Online)
- Regulator
- Vermont Department of Financial Regulation (DFR), Banking Division
- Vermont Department of Financial Regulation (DFR)
Rules are quoted from the cited sources. How payday lending is regulated.
Key rules for borrowers in Vermont
Quoted from the statute, regulator or agency named in each row.
| 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
All Vermont citiesWe cover 40 Census places in Vermont.
Advertising disclosure: Paydayloaning 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.