Compare legal limits, fees and the true cost of small loans in your state before you talk to any lender. Compare legal limits, fees and the true cost of small loans in your state.
Payday loan alternatives in Vermont
Vermont payday loan rules
- Max loan amount
- Prohibited
- Min loan term
- N/A
- Max loan term
- N/A
- Finance charge cap
- Capped at 18% APR
- Max absolute fee
- N/A
- Typical APR
- < 18%
- Rollovers (extensions)
- Prohibited
- Simultaneous loans
- N/A
- Right to rescind
- N/A
- Governing law
- Vermont Small Loan Law
- Regulator
- VT Dept of Fin. Reg.
Vermont at a glance
| Metric | Vermont | United States |
|---|---|---|
| Population | 645,254 | 332.3M |
| Median household income | $80,516 | $85,275 |
| Median rent | $1,218/mo | $1,432/mo |
| Income spent on rent | 33.3% | 31.6% |
| Homeownership | 73.3% | 65.4% |
| Poverty rate | 10.8% | 12.6% |
| Unemployment rate | 3.7% | 5.3% |
| Without health insurance | 3.9% | 8.6% |
| Veterans | 6.5% | 6.5% |
Source: U.S. Census Bureau, American Community Survey, by ZIP code. City and state figures are population-weighted averages of ZIP code data and are approximate.
Loan cost calculator for Vermont
Payday loans are not available in Vermont. See what a regulated installment loan or credit union PAL would cost instead.
Vermont cap for consumer loans: 18.0%
- Monthly payment
- $87.76
- Total interest
- $26.58
- Total to repay
- $526.58
- Share of median monthly household income in Vermont
- 1.3%
- Same loan as a payday loan
- A payday loan at a typical $15 per $100, renewed every two weeks for the same period, would cost $975
Estimate only, with fixed monthly payments. Actual rates and terms vary by lender.
Borrowing $500 for 6 months in Vermont
| Option | Payment | Total cost of borrowing |
|---|---|---|
| Installment loan at the Vermont rate cap (18% APR) | $87.76/mo | $26.58 |
| Credit union PAL (28% APR) | $90.27/mo | $41.62 |
| Payday loan renewed every 2 weeks (typical $15 per $100, not available in Vermont) | $75.00 every 2 weeks | $975.00 |
- Monthly payment at the Vermont rate cap vs median monthly household income
- 1.3%
Example calculation with fixed monthly payments; the payday row shows typical out-of-state pricing for comparison. Actual rates and terms vary by lender.
Vermont in context
- Population rank
- 49th
- of 50 states
- Median household income rank
- 22nd
- of 50 states
- Households earning under $25,000
- 14.6%
- ▼ 0.3 pts vs US
- Median home value
- $310,278
- ▼ 20% vs US
- Home value to income
- 3.9×
- A $400 emergency expense
- 1.8 days
- of median household income
Safe borrowing options in Vermont
Facing an unexpected expense? Finding emergency cash in Vermont starts with understanding local rules. Because Vermont law prohibits triple-digit APR payday loans, residents are protected by strict consumer lending caps.
We connect you with state-licensed lenders offering safe, compliant and affordable borrowing alternatives, with clear terms, manageable payments and no predatory fees.
Why borrowers in Vermont choose regulated loans
- Capped APRs Rates are limited by Vermont law, which keeps repayment affordable.
- Licensed lenders Offers come from providers licensed or authorized to lend in Vermont, overseen by the VT Dept of Fin. Reg.
- Fixed installment terms Predictable monthly payments instead of one lump-sum balloon payment.
- Transparent financing Clear contracts with all fees disclosed upfront, in line with Vermont regulations.
Consumer notice for Vermont residents: Traditional short-term payday loans with high APRs are prohibited under Vermont law (Vermont Small Loan Law). This website does not broker or offer unlicensed, high-interest cash advances. All loan options presented must comply with Vermont interest rate caps and consumer finance regulations. Review all loan terms carefully before signing.
Vermont payday loan FAQ
Are payday loans legal in Vermont?
No. Traditional short-term payday loans are not permitted in Vermont. Under the Vermont Small Loan Law, consumer loans are capped at 18% APR, which protects residents from triple-digit interest rates and predatory lending cycles.
Can I get an online payday loan from an out-of-state lender?
No. Out-of-state and online lenders must follow Vermont consumer lending laws when lending to Vermont residents. A loan that exceeds the state rate limit or is made without a license from the VT Dept of Fin. Reg. may be void or unenforceable under Vermont law.
Why are payday lenders restricted in Vermont?
Vermont lawmakers set strict interest rate caps to protect consumers from debt traps. Traditional payday loans typically carry APRs of 300% to 600%, far above what Vermont law allows: consumer loans are capped at 18% APR.
What happens if an unlicensed lender offers me a loan?
Lending without a valid license in Vermont violates state financial laws. If an unlicensed lender contacts you or tries to collect unauthorized high-interest debt, you can file a complaint with the VT Dept of Fin. Reg.
What legal borrowing options are available in Vermont?
While high-interest payday loans are prohibited, Vermont residents have access to several safer, regulated alternatives:
- Payday Alternative Loans (PALs): small-dollar loans from federal credit unions, with rates capped at 28% APR.
- Credit union personal loans: regulated installment loans that comply with Vermont rate limits.
- Earned wage access (EWA) apps: early access to wages you have already earned, with transparent flat fees or no interest.
- Local assistance programs: community relief organizations and nonprofit funds for emergency financial help.