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States New Jersey Rates And Fees

Loan Rates and Fees in New Jersey

Page last reviewed: March 27, 2026 · Reviewed for accuracy by LendUp

Payday Loan Costs in New Jersey

Payday Loans

New Jersey does not license payday or short-term lenders. State law caps small-loan interest at 30% APR, which makes the high-fee, short-term payday model unlawful here. For installment loan costs, see below.

Installment Loan Costs in New Jersey

Installment Loans

Licensed consumer lenders in New Jersey operate under the Consumer Finance Licensing Act, which caps interest using a tiered, declining-balance model - you pay interest only on what you still owe, not the original loan amount.

Portion of Unpaid Balance Maximum Annual Rate
First $2,000 30%
Amount above $2,000 24%

On a $2,000 loan at 30% annual interest for 12 months with equal monthly payments, you'd repay approximately $2,334 total - roughly $334 in interest plus your $2,000 principal, before any permitted fees. On a 12-month loan at this cap, the APR shown on your federal disclosure will align closely with the stated 30%.

Loan amount
$2,000
12 monthly payments
Total interest
~$334
30% annual interest
Total repayment
~$2,334
principal + interest
  • Origination fee: New Jersey law does not authorize a separate origination or processing fee for consumer lenders - confirm with the NJ DOBI Consumer Lender Licensing page if an upfront fee appears on your offer.
  • Refinancing restarts interest on the new balance - compare your remaining balance to the new loan's total of payments before you agree.
  • Returned payment fee: no specific state cap is set by statute - ask the lender for the exact amount before you sign.
  • Late fee: no specific state cap is set by statute - ask the lender for the exact amount and grace period before you sign.
  • You can prepay in full at any time; interest stops accruing on the paid-off balance so you only pay for the days you held the loan - see the installment loans page for repayment details.

If an offer exceeds these limits, verify with the NJ Department of Banking and Insurance - Consumer Inquiries.

What to Check on Your Offer

Installment
  • Interest rate: can't exceed 30% per year on the first $2,000 or 24% per year on any amount above that.
  • Origination fee: not authorized under NJ consumer lending law - question any upfront charge not explained by the lender in writing.
  • Late fee: no state cap - ask the lender for the exact amount before you sign.
  • Prepayment: no penalty; interest stops accruing so you only pay for the days you held the loan.
  • Returned payment fee: no state cap - ask the lender for the exact amount before you sign.
  • Total of payments: the single most important number - what you'll actually repay over the full term, including all interest and fees.
  • Payday-style offers: New Jersey doesn't license payday lenders - if an offer carries a triple-digit APR or a single balloon payment due in under 60 days, the lender may not be properly licensed in this state.

Official Sources

Rules can change - confirm with the New Jersey Department of Banking and Insurance if an offer doesn't match what's shown here.

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