Loans in Vermont: payday, personal & title loan laws (2026)
Payday Loans Not available
Payday loans are banned in Vermont.
Personal Loans
24% on first $1,000, 12% above (or 18% APR if higher).
Title Loans Not available
High-cost car title loans are not available in Vermont: vehicle-secured loans are capped at 18% a year (current and prior model year vehicles) or 20% (older vehicles), and any lender must be licensed by DFR.
Vermont at a glance
Counties in Vermont
Cities in Vermont
Frequently asked questions
Are payday loans legal in Vermont?
Payday loans are banned in Vermont. Non-bank lenders need a DFR license, and licensees may not charge more than the state's 12-24% interest limits; loans above those limits are unenforceable. The Attorney General states payday loans (loans contingent on a postdated payment) are explicitly banned.
How much do payday loans cost in Vermont?
No payday product is allowed. General limits: 18% a year on single-payment loans by Title 8 lenders; other installment loans 24% a year on the first $1,000 and 12% on the rest (or 18% APR on the whole balance, whichever is higher).
Are title loans legal in Vermont?
High-cost car title loans are not available in Vermont: vehicle-secured loans are capped at 18% a year (current and prior model year vehicles) or 20% (older vehicles), and any lender must be licensed by DFR.
What interest can title lenders charge in Vermont?
18% a year (current or previous model-year vehicle) or 20% a year (older vehicle).
Is there a cap on personal loan interest rates in Vermont?
24% on first $1,000, 12% above (or 18% APR if higher).
Do personal loan lenders need a license in Vermont?
Yes. Anyone who makes loans and charges interest or fees, or solicits loans, must first get a license from the Commissioner of Financial Regulation, unless exempt (e.g., banks and other financial institutions, pawnbrokers, insurers). Applications are filed through NMLS.