Personal Loans in New Hampshire: What Licensed Lenders May Charge

How the New Hampshire cap works

RSA 399-A covers four kinds of small loans: closed-end installment loans, open-end loans, payday loans and title loans. A loan counts as a small loan when it is $10,000 or less and is for personal, family or household use (RSA 399-A:1, XX). For closed-end and open-end small loans, RSA 399-A:16 sets one flat limit: the annual percentage rate may not exceed 36%.

The APR is the rate on your Truth in Lending disclosure, so it already counts interest and most fees. The statute leaves two charges out of the finance charge: one application fee and one participation or membership fee, each up to $100 per borrower per year. Those can raise what you pay above what the APR alone suggests, so add them to the total when you compare offers.

How New Hampshire compares with its neighbors

New Hampshire's flat 36% is higher than the limits next door on the same comparison of a $2,000 two-year loan: Vermont about 21%, Massachusetts about 24% and Maine about 30%. Loans above $10,000 are outside RSA 399-A's small-loan cap, so read the APR on any larger offer with care. The rules that apply follow the lender's license and your state of residence. The state rules map shows every state side by side.

Who needs a license and who does not

No one may engage in the business of a small loan lender in New Hampshire without first obtaining a license from the commissioner (RSA 399-A:2). Online lenders that lend to New Hampshire residents under state law need the same license as a storefront lender.

• Banks, trust companies and credit unions operating under the laws that govern them are exempt (RSA 399-A:3), and a bank may charge the rates its home state allows.
• Lenders that partner with an exempt bank are not automatically outside the law. RSA 399-A:2, III applies the chapter to anyone who tries to evade it, including a company that lends while claiming to be the agent of an exempt entity but keeps the preponderant economic interest in the loan.
• Payday and title loans are licensed under the same chapter with their own rules. Our sister site Lendmira covers them on its New Hampshire lending laws page.

Late fees, prepayment and add-ons

If the contract allows it, a licensed lender may charge a single late fee on each installment in default, up to 5% of that installment (RSA 399-A:15, XV). The lender must let you pay one or more full installments in advance. Credit life, accident and health, and involuntary unemployment insurance may be sold only in line with RSA 408:14; read credit insurance and add-ons before you agree to any of them.

Check a lender and file a complaint

1. 1 Confirm the license before you apply: ask the lender for its New Hampshire license number and check it with the Banking Department or on NMLS Consumer Access.
2. 2 Keep the loan papers: the Truth in Lending disclosure, the agreement and any messages about fees.
3. 3 Contact the New Hampshire Banking Department at (603) 271-3561, weekdays from 8:00 am to 4:30 pm, or use the Consumer Assistance section of its website to file a complaint.
4. 4 Send a complaint to the CFPB as well if the lender is a bank or a bank partner, or if you are unsure who regulates it. Our guide on how to verify a lender lists the warning signs.

Questions people ask