If you’re looking for money to cover a short-term expense, Vermont has plenty of resources that could be less costly than some payday loan alternatives.
Can I get a payday loan in Vermont?
No, payday lending is prohibited in Vermont. Vermont Statutes Ann. tit. 9 § 41a, the small loans act, applies to all small loan lenders in the state. It states that lenders must abide by a strict 18% APR cap.
In addition, 8 V.S.A.§ 2519(a)(13) states that lenders aren’t permitted to hold checks for future deposits. This means a lender can’t cash or advance money — whether it’s a physical check or an ACH transfer from your bank account. And while some lenders use loopholes in Vermont law to provide online payday loans, Vermont is taking steps to prevent this in the future.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
What other options do I have if I need extra money in Vermont?
Programs like Medicaid, SNAP and other federal programs can make it easier for you afford your everyday bills while you work on paying down your debt. In addition, Vermont has a variety of programs to give a helping hand to Vermonters in need:
3SquaresVT
Child Care Financial Assistance Program
Essential Person Program
Fuel Assistance / Crisis Fuel Assistance
Emergency Assistance
Farm To Family
Individual Career Advancement Network (ICAN)
Individual Development Account (IDA)
Reach Up / Child-Only Reach Up
Weatherization Program
Are there any other short-term options in Vermont?
Consider a credit card cash advance. If you have a credit card and haven’t met the credit limit, you can take out an advance on the remaining amount. While this is an expensive option, you have more time to pay it off than with a payday loan.
Negotiate with your creditors. If you can’t afford to make payments on your debts, you should talk to your creditors and negotiate a lower payment. Many will be willing to adjust how much or how frequently you pay off your debt to make it more affordable for you.
Find a credit counselor. This isn’t a quick fix, but it can help you learn how to budget and control your finances. A credit counselor can teach you ways to avoid needing something like a payday loan in the future, which will lower your debt in the long run.
What costs can I expect with a loan in Vermont?
Vermont caps small loan interest at 18%, but you may be required to pay origination fees and other charges for a loan. Because of the variety of lenders out there, we can’t say the exact costs of a loan. You’ll need to read over your loan contract very carefully before deciding. Remember, if you don’t like the terms of a loan offer, you can always choose to reject it.
Bottom line
Vermont may prohibit payday loans, but there are still some lenders that offer installment loans — as long as they abide by the interest rate cap. But if you’re stuck in a bad financial situation, you may want to consider credit counseling or one of the alternatives listed above before you take on more debt.
Frequently asked questions
You should get in touch with the Vermont Banking Division.
It depends. This is currently being contested by the state of Vermont and various tribal lenders. Keep an eye out for new regulations concerning this, and remember that a payday loan is an expensive option whether it’s from a US or Native American company.
No. Because these are similar to payday loans and use your vehicle as collateral, Vermont prohibits lenders from offering auto title loans.
Elizabeth Barry is Finder's global fintech editor. She has written about finance for over six years and has been featured in a range of publications and media including Seven News, the ABC, Mamamia, Dynamic Business and Financy. Elizabeth has a Bachelor of Communications and a Master of Creative Writing from the University of Technology Sydney. In 2017, she received the Highly Commended award for Best New Journalist at the IT Journalism Awards. Elizabeth's passion is writing about innovations in financial services (which has surprised her more than anyone else).
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