Loan Rates and Fees in Vermont
Page last reviewed: March 27, 2026 · Reviewed for accuracy by LendUp
Payday Loan Costs in Vermont
Vermont does not license payday lenders or authorize short-term, single-payment lending. No licensed lender in the state can offer a payday loan. For installment loan costs, see below.
Installment Loan Costs in Vermont
Licensed lenders in Vermont charge interest on a declining-balance basis - you pay interest only on what you still owe. Rate caps depend on the outstanding principal balance. Verify with the Vermont Department of Financial Regulation which caps apply to your lender's license type.
| Principal Balance | Maximum Annual Rate |
|---|---|
| First $1,000 | Up to 24% per year |
| Above $1,000 | Up to 18% per year |
Origination fees and upfront charges are prohibited - a lender cannot add a separate origination fee on top of the maximum interest rate.
On a $1,000 loan at 24% annual interest repaid over 12 equal monthly payments, you'd pay approximately $1,134 total, with roughly $134 in interest. Your federal Truth in Lending disclosure will show the exact APR.
- Refinancing: Refinancing restarts interest on the new amount - compare your remaining balance to the new loan's total payments before you agree.
- Returned payment fee: Vermont does not set a specific state cap on returned payment fees - ask the lender for the exact amount before you sign.
- Late fee: Vermont does not set a specific state cap on late fees - ask the lender for the exact amount and grace period before you sign.
- Prepayment: You can pay off the loan early without penalty and interest stops accruing on the date you pay - see installment loans in Vermont for details on early payoff.
If an offer exceeds these limits, verify with the Vermont Department of Financial Regulation.
What to Check on Your Offer
- Interest rate: should not exceed 24% per year on the first $1,000 or 18% above $1,000 - confirm the cap that applies to your lender's license type with the Vermont DFR.
- Origination fee: prohibited - question any line item labeled "origination fee" or "administrative fee."
- Returned payment fee: no state cap - ask the lender for the exact amount before you sign.
- Late fee: no state cap - ask the lender for the exact amount and grace period before you sign.
- Prepayment penalty: not permitted - if your offer includes one, contact the Vermont DFR.
- Total of payments: add up every scheduled payment to see what you'll actually repay over the full term.
Official Sources
- Vermont Licensed Lender Act (8 V.S.A. ch. 73)
- Vermont Usury Statute (9 V.S.A. ch. 4)
- Vermont DFR - Consumer Resources
Rules can change - confirm with the Vermont Department of Financial Regulation if an offer doesn't match what's shown here.