NY state reference
New York lending rules
New York has 595 Census places covered on Personalloaned, with a combined estimated population of 12,443,462. Personal-loan terms in New York are set by licensed lenders under state law; the sourced rules below apply to every borrower in the state.
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- Usury cap 16% per annum maximum civil rate (Banking Law 14-a; General Obligations Law 5-501)
- Payday lending Illegal in New York State, in person, by telephone, or over the Internet
- State regulator New York State Department of Financial Services (DFS)
Sourced rules
Key rules for borrowers in New York
| Rule | Detail | Source |
|---|---|---|
| Maximum legal interest rate (usury cap) | 16% per annum maximum civil rate (Banking Law 14-a; General Obligations Law 5-501) Source says: "The maximum rate of interest provided for in section 5-501 of the general obligations law shall be sixteen per centum per annum." |
New York State Senate (Open Legislation) as of 2026-09-16 |
| Payday lending status | Illegal in New York State, in person, by telephone, or over the Internet Source says: "Payday loans are illegal in New York State." |
New York State Department of Financial Services as of 2026-09-16 |
| Small-loan / installment lender licensing | Licensed Lender license required (Banking Law Article 9, sections 340-361); administered via NMLS Source says: "The Department of Financial Services uses the Nationwide Multistate Licensing System and Registry (NMLS) to manage the Licensed Lender License." |
New York State Department of Financial Services as of 2026-09-16 |
| State lending regulator | New York State Department of Financial Services (DFS) Source says: "Notify the Department of Financial Services at (800) 342-3736 if you believe payday loans are being made in New York" |
New York State Department of Financial Services as of 2026-09-16 |
| Criminal usury in the second degree (Penal Law 190.40) | Interest rate exceeding 25% per annum; class E felony Source says: "at a rate exceeding twenty-five per centum per annum or the equivalent rate for a longer or shorter period" |
New York State Senate (Open Legislation) as of 2026-09-16 |
Cities in New York
We cover 595 Census places in New York. The count and the combined population figures are summed from the US Census Bureau's Vintage 2023 subcounty population estimates (retrieved 2026-09-17).
Common questions