Personal Loans in Rhode Island: What Licensed Lenders May Charge

How the Rhode Island small-loan limits work

Chapter 19-14.2 governs small loans of $5,000 or less. A small loan lender may lend up to $5,000 in all to one borrower and charge interest on the unpaid principal at a monthly rate that falls as the loan grows. The rate applies to the whole loan, not to slices of it.

At the top rate, a $2,000 loan repaid over 24 months at 2% a month costs $105.74 a month, or $2,537.76 in all, so $537.76 is interest. The figures are an example of the ceiling, not an offer; compare the total of payments on any offer you get with that number.

The chapter also limits what else a lender may add: its section 19-14.2-12 is titled "Small loans — No other charges — Exception." Section 19-14.2-1 makes it unlawful for anyone not authorized by the chapter to charge more on a loan of $5,000 or less, including by "any device, subterfuge, or pretense." The 2025 law rewrote that section, with a new version that takes effect on January 1, 2027.

Payday loans end on January 1, 2027

In Rhode Island, payday loans are made by licensed check cashers as "deferred deposit" transactions under section 19-14.4-5.1. The General Assembly passed 2025-H 5042A and 2025-S 0229A to end that exception, and the bills were signed into law. The statute now lists section 19-14.4-5.1 as repealed effective January 1, 2027, and the related fee and posting sections have new versions from that date.

A loan taken out before the repeal date is not wiped out by it; only new ones end. Our sister site Lendmira explains the current payday rules and the change on its Rhode Island lending laws page.

Who needs a license and who does not

Section 19-14-2 requires a DBR license to make or fund loans or act as a lender or small loan lender, and a separate license to broker loans. Each loan made without a required license is a separate violation. Rhode Island licensees use the NMLS, so you can look them up on NMLS Consumer Access.

• Banks and credit unions answer to their own charters and banking regulators instead, and a bank may charge the rates its home state allows.
• Online lenders that partner with a bank may make loans through that bank, which can put the loan outside the Rhode Island limits. Ask who the lender of record is.

How Rhode Island compares with its neighbors

On the National Consumer Law Center's comparison of a $2,000 two-year loan, Rhode Island and Massachusetts both cap that loan at about 24% APR, while Connecticut allows 36%. Your state of residence and the lender's license decide which rules apply. The state rules map shows every state side by side.

Check a lender and file a complaint

1. 1 Look up the license on NMLS Consumer Access, by the company's name or NMLS number, before you apply.
2. 2 Keep the loan papers: the Truth in Lending disclosure, the agreement and any messages about fees.
3. 3 Complain to the Division of Banking with its online consumer complaint form, or call (401) 462-9503 on weekdays from 8:30 a.m. to 4:00 p.m.
4. 4 Send a complaint to the CFPB as well if the lender is a bank or a bank partner. How to verify a lender lists what to check.

Questions people ask