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Usury Laws in Vermont

Vermont sets a 12% general rate, allows higher statutory caps for some loan types such as installment loans, and makes knowingly charging more than the legal rate a crime punishable by a fine of up to $500 or 6 months in jail.

Last checked . General information, not legal advice.

Vermont at a glance

Maximum agreed rate
12% general; higher for some loan types
Installment loans may carry up to 24% on the first $1,000 and 12% above that, or 18% APR, whichever is higher. These caps apply to natural persons too.
Legal rate (no rate agreed)
12%
Criminal usury
Knowingly over the legal rate: up to $500 or 6 months
A second offense carries up to $1,000 or 1 year. The lender also loses all interest and half the principal.

Sources

Last checked

The rules in Vermont

What is the maximum interest rate on a private loan in Vermont?

Maximum agreed rate in Vermont: 12% general; higher for some loan types. Installment loans may carry up to 24% on the first $1,000 and 12% above that, or 18% APR, whichever is higher. These caps apply to natural persons too.

What interest rate applies in Vermont when no rate was agreed?

Legal rate (no rate agreed) in Vermont: 12%.

When is charging high interest a crime in Vermont?

Criminal usury in Vermont: Knowingly over the legal rate: up to $500 or 6 months. A second offense carries up to $1,000 or 1 year. The lender also loses all interest and half the principal.

Where do the Vermont usury laws come from?

The rules above come from 9 V.S.A. 41a and 9 V.S.A. 50. Each source is linked on this page. We last checked them in October 2026.

What this means in practice

Put the interest rate in writing. Many usury statutes set one limit for written agreements and a different, often lower, rate when nothing was agreed in writing. A signed promissory note or loan agreement that states the rate, the payment schedule and what happens on late payment avoids most disputes.

Count every charge, not only the stated rate. Courts may treat fees, points, required extras or a discount taken from the amount lent as interest when deciding whether a loan is usurious. A loan with a modest rate and large fees can still cross the limit.

Check who the lender is and what the loan is for. Usury limits often do not apply, or apply differently, to banks, licensed consumer lenders, credit card issuers, larger loans and loans to businesses or corporations. A rule written for loans between individuals may not cover your situation, so read the statute and its exceptions.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.