Many Connecticut residents from Hartford to New Haven and beyond sometimes need fast financial assistance. Short-term loans can provide a quick solution, whether an unexpected bill, car repair, or emergency expense; Connecticut law regulates payday lending, ensuring clear terms and fee disclosures for borrowers. This transparency means you’ll always know exactly what you’re borrowing and its cost.
Short-Term Personal Loans Rates and Fees
In Connecticut, traditional payday loans are prohibited. Instead, residents can access small consumer loans governed by strict state laws. These loans are designed to provide much-needed cash while protecting borrowers from excessive rates.
APRs
Connecticut law—under the small loan, check casher, and usury statutes—imposes a 12% APR cap on most small consumer loans. While open-end loans can sometimes be offered at rates up to 19.8%, the general usury cap for licensed loans is 12%.
Loan Amounts
As of October 1st, 2023, licensed lenders in Connecticut may offer small consumer loans of up to $50,000.
Terms
These loans are structured with more extended repayment periods than typical payday loans. Terms vary by loan type, with closed-end loans usually repaid over several months to a year.
Fees
All fees are strictly regulated and must be fully disclosed in the loan agreement. Additional charges, if any, are subject to the state’s usury and minor loan laws.
Example Calculation
- Loan Amount: $300
- APR: 12%
- Repayment Term: 6 months (closed-end loan)
- Monthly Payment: Approximately $53 (includes principal and interest)
- Total Repayment: Around $318, including any allowable fees
Lending Regulations in Connecticut
Connecticut has robust consumer protection laws that effectively prohibit payday loans. Instead, lenders offering small consumer loans must comply with strict interest rates and fee caps set by state law.
| Regulation | Details |
|---|---|
| Interest Rate Cap | 12% APR cap on small consumer loans per usury law; open-end loans may be offered at up to 19.8% in some instances. |
| Maximum Loan Amount | Up to $15,000 for licensed small consumer loans. |
| Term Length | Varies by loan type; typically structured for longer repayment terms than payday loans (several months up to a year). |
| Fees | All fees must be fully disclosed in the loan agreement; additional fees are regulated by state law. |
| Oversight | Regulated by the Connecticut Department of Banking. |
Our Benefits
Effortless Application
Our online application is simple and secure, designed with Connecticut residents in mind. Just fill in your basic details, and you’ll quickly receive personalized offers from licensed lenders.Tailored Lender Matches
We review your financial profile to connect you with lenders who offer competitive rates and flexible terms that meet your unique needs under Connecticut law.Secure Data Handling
Your privacy is paramount. We use state-of-the-art encryption and robust security measures to safeguard your personal information throughout the loan process.What Our Clients Say
Our clients consistently rate us five stars on Trustpilot for our transparency, speed, and exceptional customer service.
How to Apply for a Short-Term Loan in Connecticut
Provide Your Information
Complete our secure online form with your basic details, including the loan amount you need, income information, and other essential data.We Search Lender Offers
Once you submit your application, our system immediately begins matching you with licensed lenders in Connecticut who meet your requirements.Accept and Get Funded
Review the personalized offers tailored to your financial profile. If you choose the best option, electronically sign the agreement and receive your funds—often on the same day.Loan Alternatives in Connecticut
If a small consumer loan isn’t the ideal solution, consider these alternatives:
Emergency Loans
Access immediate cash to cover unexpected expenses quickly with emergency loans.
Personal Loans
Explore flexible personal loan options with more significant amounts and extended repayment terms using personal loans.
Installment Loans
Spread your repayment over several months with manageable monthly payments using installment loans.
Bad Credit Loans
Find specialized options designed for individuals with less-than-perfect credit with bad credit loans.
FAQ
Are Short-Term Loans Legal in Connecticut?
Yes, short-term loans are legal in Connecticut—but traditional payday loans are prohibited. Instead, residents can obtain small consumer loans under strict state regulations.
What Are the Requirements to Apply for a Short-Term Loan in Connecticut?
Typically, you must be a Connecticut resident, at least 18 years old, and able to provide proof of income; the Banking Department of Connecticut must also license lenders in Connecticut.
What Are the Top 5 Cities for Short-Term Loans in Connecticut?
These loan services are designed for the financial needs of Hartford, New Haven, Bridgeport, Stamford, and Waterbury residents.
How Quickly Can I Receive Funds?
Once approved, many lenders can deposit funds on the same day, ensuring you receive the cash needed most.
What Fees Might Not Be Included in the APR?
While all fees must be fully disclosed and included in the APR, always review your loan agreement carefully, as additional charges might sometimes apply.
Can I Refinance My Short-Term Loan?
Some lenders may offer options to refinance or extend your loan if needed, though this may incur extra fees. Be sure to review all terms before proceeding.