Vermont maximum interest rate is the answer to “maximum interest rate allowed by law in Vermont”. This guide gives the Vermont figures in a dated table, explains in plain words what they mean, walks through the steps, and points to the official forms and free help.
The Vermont maximum interest rate figures on this page were verified against a dated 50-state compilation and Vermont sources as of October 2026; the statute named here is where to check them yourself.
Vermont maximum interest rate at a Glance
| Legal rate when no rate is agreed | 12% per year |
| Who the cap does not reach | separate higher limits apply to installment loans, retail installment contracts and credit cards (9 V.S.A. 41a(b)) |
| Statute | 9 V.S.A. 41a |
In This Vermont maximum interest rate Guide:
What the Vermont Maximum Interest Rate Means
Usury means charging more interest than Vermont law allows. The legal rate is the default that applies when a contract sets no rate or when no other law sets a different limit. The state generally treats that same figure as the ceiling a lender may contract for, figured by the actuarial method, unless another statute allows more for that type of credit.
The Vermont maximum interest rate Figures
| Rule | Bonus Bank Daily verified figure |
|---|---|
| Legal rate when no rate is agreed | 12% per yearcompilation / agency — verified Oct 2026 |
| Who the cap does not reach | separate higher limits apply to installment loans, retail installment contracts and credit cards (9 V.S.A. 41a(b))compilation / agency — verified Oct 2026 |
| Statute | 9 V.S.A. 41acompilation / agency — verified Oct 2026 |
The Vermont maximum interest rate figures on this page were verified against a dated 50-state compilation and Vermont sources as of October 2026; the statute named here is where to check them yourself.
Who the Vermont Maximum Interest Rate Applies To
The general cap reaches private lenders, individuals and businesses that lend money or extend forbearance in Vermont, unless another law allows a higher rate. Under federal law, banks chartered in another state, and national banks, may usually charge the rate their home state allows.
Lenders licensed by Vermont may charge the rates set for their type of loan, such as 24% a year on the first $1,000 of an installment-loan balance and 12% on the rest, or an 18% APR on the whole balance, whichever is higher. Credit cards are governed by their own limits and by federal law, as the credit_cards field explains.
Credit Cards and the Vermont Maximum Interest Rate
Most credit cards are issued by national or out-of-state banks. Federal banking law lets those banks charge the interest rate their home state allows to customers in every state, including Vermont. So a card rate above Vermont’s general cap is usually legal. The rate and its terms must still be disclosed in the card agreement.
What Happens When a Lender Breaks the Vermont Maximum Interest Rate
If you paid more interest than the law allows, Vermont lets you sue to get back the extra amount, plus interest from the date you paid and your collection costs, including a reasonable attorney’s fee (9 V.S.A. § 50(a)). If a lender knowingly or willfully charged an unlawful rate, the lender in most cases cannot collect any interest or charges and can collect only half the principal (§ 50(b)).
Knowing violations are also a crime. A conviction after a first conviction can bring a fine of up to $1,000, up to one year in prison, or both. Check the exact current wording in the statute or with an attorney.
How to Check a Loan Against the Vermont Maximum Interest Rate
1) Find the APR on your Truth in Lending disclosure or loan agreement. 2) If the APR is missing, add up all the interest and finance charges and compare them with the amount borrowed and the length of the loan. 3) Check what kind of loan it is (bank, licensed installment lender, retail installment contract or credit card), since each has its own limit.
4) Look up the lender’s license on NMLS Consumer Access. 5) Compare the rate with the limit for that loan type in the statute, and confirm with the statute, the court clerk or an attorney.
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Where to Report a Loan Above the Vermont Maximum Interest Rate
The Vermont Department of Financial Regulation, Banking Division, licenses lenders and takes complaints about state-chartered banks, licensed lenders and unlicensed lenders. Its phone numbers are 802-828-3307 and 888-568-4547, and its email is [email protected]. You can also file a complaint with the federal Consumer Financial Protection Bureau at consumerfinance.gov/complaint.
Common Mistakes With Vermont maximum interest rate
The most common mistake is missing a deadline: court and creditor deadlines run whether or not you have read the papers, and a missed one usually cannot be undone. The second is relying on an old article or a friend’s experience in another state — the rules on this page differ from state to state and change often, which is why every figure here is dated.
The third is not keeping copies: every letter, form, receipt and bank statement may matter later, so keep them together and note the date you received each one.
Free Help With Vermont maximum interest rate in Vermont
You do not have to handle this alone or pay to get answers. The Vermont court self-help center explains the forms and the steps, and court clerks can tell you where and how to file, although they cannot give legal advice.
Legal aid organizations represent many people at no cost when income is limited, and the Vermont bar’s lawyer referral service can connect you with a lawyer for a low-cost first consultation. The Consumer Financial Protection Bureau accepts complaints about lenders, banks and debt collectors nationwide.
How We Verify the Vermont maximum interest rate Figures
Every figure in the table above comes from our 50-state data file, built by reading the Vermont statute or an official compilation of it, and each one carries the month we last checked it. Our writers do not change those figures; they explain them. When the law changes, the figure is updated and the date moves.
If something on this page no longer matches the statute, the statute controls — and we want to hear about it.
The Vermont Attorney General says it is unlawful in Vermont for a lender to require an upfront payment from you before it releases loan funds (https://ago.vermont.gov/consumer/money-and-credit/personal-loans). Lenders and loan solicitors must hold a Vermont license, which you can check on NMLS Consumer Access.
Next rung: the Vermont payday loan page covers the short-term loans that have their own caps.
Vermont — the bottom line
- Vermont maximum interest rate rules set two numbers — the legal rate and the written-contract cap — both in the table above.
- Many lenders sit outside the Vermont maximum interest rate cap by license or charter, so check which rule covers your loan.
- If a loan breaks the Vermont maximum interest rate rules, keep the agreement and report it to the state regulator.
Vermont Maximum Interest Rate FAQ
What is the maximum interest rate allowed by law in Vermont?
Without an agreement: 12% per year.
Official Vermont Sources & Resources
- Statute and the Conference of State Bank Supervisors 50-state usury survey (verified by each state regulator) — maximum legal interest rate: https://www.csbs.org/50-state-survey-consumer-finance-laws
- Statute and the Conference of State Bank Supervisors 50-state usury survey (verified by each state regulator) — maximum legal interest rate: https://facts.csbs.org/consumer-finance-law/dev
- Vermont statute / opinion: https://legislature.vermont.gov/statutes/section/09/004/00041a
- Vermont Department of Financial Regulation, Banking Division (File a Complaint, Banking): https://dfr.vermont.gov/consumers/file-complaint/banking
- Consumer Financial Protection Bureau: consumerfinance.gov
This Vermont maximum interest rate guide was last verified against official Vermont sources in October 2026. Rules change — confirm the current rule with the statute or a licensed attorney.
More Vermont Money Rights Guides
Disclaimer: This guide is general information, not legal or financial advice. Bonus Bank Daily is an independent educational resource — not a law firm, not a bank, not a debt collector and not a government agency. Judgment, levy, interest-rate and debt rules change — every figure here carries the date we verified it.
Confirm the current rule with the statute, the court clerk or a licensed attorney in your state before you act.