Though Rhode Island may be the smallest state in the nation, it boasts a big personality—from scenic coastal lighthouses and Gilded Age mansions to its vibrant arts scene. Short-term or payday-style loans are permitted in Rhode Island. State law limits the maximum loan amount and fees, protecting residents against overwhelming costs, although rates can still run high due to the brief repayment terms.
Short-Term Personal Loan Rates and Fees in Rhode Island
Rhode Island law allows payday lenders to charge certain fees for short-term loans, capped at a specified rate. Understanding these details before signing an agreement is key to avoiding surprises down the road.
APRs
Rhode Island doesn’t strictly cap the APR for short-term loans in the usual sense, but it does limit lenders to charge up to $10 per $100 borrowed. Always review the full cost of borrowing, including both fees and interest.
Loan Amounts
The maximum payday or short-term loan amount in Rhode Island is typically $500. Lenders cannot exceed this figure. It ensures that borrowers don’t take on more immediate debt than the state allows, though some lenders may offer smaller amounts based on your income.
Terms
Short-term loans in Rhode Island are often due on your next payday, with terms that usually don’t exceed 31 days. If your pay schedule is monthly or biweekly, confirm that the due date aligns with your next paycheck to minimize repayment stress.
Fees
Lenders generally charge up to $10 per $100 borrowed for a two-week loan. This can translate to significant costs in terms of APR because of the short repayment period. If you cannot repay on time, additional fees may apply if the loan is renewed—so always check the total repayment amount and consider your budget carefully.
Short-Term Loan Example
Consider a $400 short-term loan due in 14 days at $10 per $100 borrowed:
- Loan Amount: $400
- Fee: $40 ($10 × 4)
- Total Repayment: $440 at the end of 14 days
Lending Regulations in Rhode Island
The Rhode Island Department of Business Regulation (DBR) oversees licensing and compliance for short-term lenders. The state requires these lenders to follow guidelines on maximum loan amounts and fees. For official information, visit the Rhode Island Department of Business Regulation website.
| Regulation | Details |
|---|---|
| Maximum Loan Amount | $500 |
| Term Length | Often 14-31 days, typically due on your next payday |
| Fees | Up to $10 per $100 borrowed for a two-week term |
| APR | Not capped in the traditional sense, but fees are limited per $100 borrowed |
| Oversight | Regulated by the RI Department of Business Regulation |
Our Benefits
A Connector, Not a Lender
We don’t lend money ourselves. Instead, we connect Rhode Island borrowers to state-licensed lenders. Compare their offers and choose what matches your needs.Simple Application Process
From Providence to Cranston and beyond, requesting a short-term loan online is convenient. Complete a straightforward form without extensive paperwork.Broad Lender Network in Rhode Island
We work with various lenders, enabling you to explore different terms and fees. Evaluate each option and select a loan you can repay comfortably.Your Decision
We present offers, and you decide whether to move forward. Read all disclosures carefully, paying special attention to the total repayment amount.Secure Platform
Your personal information is handled with care. Our secure technology safeguards your data as you search for a suitable loan.What Our Clients Say
Read about other customers who’ve used our services:
How to Apply for a Short-Term Loan in Rhode Island
You could receive funds as early as the next business day if your application is approved.
Provide Your Details
Fill out a short online form, sharing how much you need, your income, and basic personal data.We Match You With Lenders
We check our network to see which licensed lenders in Rhode Island might offer you a short-term loan.Accept and Get Funded
Review the lender’s offer. If you agree to the terms and are approved, funds can be deposited directly into your bank account.Loan Alternatives in Rhode Island
Emergency Loans
Emergency loans provide quicker funding when sudden expenses arise, sometimes with more predictable terms than a payday structure.
Personal Loans
Personal loans may let you borrow more and repay over a longer period, potentially at a lower overall cost.
Installment Loans
Installment loans allow repayment in scheduled increments, giving you more control over budgeting and reducing the pressure of a single lump-sum payoff.
Bad Credit Loans
Bad credit loans help those with lower credit scores access funds. Repaying on time could also support rebuilding your credit profile.
FAQ
Are Short-Term Loans Legal in Rhode Island?
Yes. Rhode Island permits payday or short-term lending under specific guidelines. Lenders must adhere to fee caps and licensing requirements set by the state.
What Are the Requirements to Apply for a Short-Term Loan in Rhode Island?
While individual lenders differ, common requirements include:
- Being at least 18 years old
- U.S. citizenship or permanent residency in Rhode Island
- Valid Social Security number
- Steady income or employment
- An active checking account
What Are the Top 5 Cities for Short-Term Loans in Rhode Island?
All Rhode Island residents can apply online, but these cities often have more storefront options:
- Providence
- Cranston
- Warwick
- Pawtucket
- East Providence
Online lenders make applications possible across the entire state as well.
How Do Rhode Island’s Short-Term Loan Fees Compare to Other States?
Rhode Island charges around $10 per $100 for short-term loans, aligning with many states’ payday-style fee structures. The short repayment periods can still result in high APRs, so plan accordingly.
Is a Short-Term Loan the Same as a Cash Advance?
Cash advances often refer to credit card or employer-based advances. Rhode Island’s short-term loans from licensed lenders function differently, with fees and terms regulated by state law.
Do Guaranteed Short-Term Loans Exist in Rhode Island?
No. Reputable lenders review your finances before approval. Any “guaranteed” offers with no background check should be approached cautiously.