What people use personal loans for
A personal loan is a lump sum repaid in fixed monthly payments, often for a larger cost such as a car repair, a move or medical bills; the examples below stay within New York limits.
What personal loans can cost
These examples show how cost adds up. They are illustrative, not a quote. Your lender sets the actual rate and terms.
Representative example
- Amount borrowed
- $3,000
- Annual percentage rate (APR)
- 25%
- Repayment
- 12 monthly payments
- Payment
- $285.13
- Finance charge
- $421.56
- Total of payments
- $3,421.56
Example: a $3,000 installment loan at 25% APR repaid in 12 monthly payments of $285.13 costs $3,421.56 in total, including a finance charge of $421.56. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Representative example
- Amount borrowed
- $1,000
- Annual percentage rate (APR)
- 25%
- Repayment
- 12 monthly payments
- Payment
- $95.04
- Finance charge
- $140.48
- Total of payments
- $1,140.48
Example: a $1,000 installment loan at 25% APR repaid in 12 monthly payments of $95.04 costs $1,140.48 in total, including a finance charge of $140.48. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Representative example
- Amount borrowed
- $500
- Annual percentage rate (APR)
- 25%
- Repayment
- 12 monthly payments
- Payment
- $47.52
- Finance charge
- $70.24
- Total of payments
- $570.24
Example: a $500 installment loan at 25% APR repaid in 12 monthly payments of $47.52 costs $570.24 in total, including a finance charge of $70.24. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
What New York law allows
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Installment and personal loans[1][2][3] | Allowed | 25% APR | Up to $25,000 | Not set by statute | Licensed Lender license | N.Y. Banking Law 340-361; N.Y. Gen. Oblig. Law 5-501; N.Y. Banking Law 14-a; N.Y. Penal Law 190.40-190.42 |
| Verified against the statute and regulator on September 23, 2026. Laws change; confirm with the regulator before you borrow. | ||||||
Bars place each APR cap on a 0 to 400% scale; the pin marks the cap. A striped bar means the statute sets no numeric cap.
The rules in full
Installment and personal loans
- Rate cap
- New York has two general usury ceilings: civil usury at 16% per annum (General Obligations Law 5-501; Banking Law 14-a, for loans under $250,000 by non-bank lenders or NY-chartered banks) and criminal usury at 25% per annum (Penal Law 190.40-190.42). A licensed lender under Article 9 of the Banking Law (Licensed Lenders, sections 340-361) may charge more than an unlicensed party could, but Article 9 licensees are barred from exceeding the rate that would otherwise be permitted 'if he were not a licensee' absent specific statutory authorization, and generally may not exceed criminal usury (25%) regardless of licensure. A licensed lender may make loans up to $25,000 (individual/personal/family/household loans) or $50,000 (business/commercial loans).
- License
- Licensed Lender license under Article 9 of the New York Banking Law, issued by the New York Department of Financial Services (DFS).
Full detail for every loan type: New York lending laws.
Help in New York
Rent and jobs in New York
Typical rent and the jobless rate, to weigh before a loan payment.
Other options in New York
Cheaper options to try first
Worth checking whatever your credit: these can cost less than a high-rate loan.
- Credit union payday alternative loans (PALs), capped at 28% APR under NCUA rules (12 CFR 701.21).
- Nonprofit credit counseling through the National Foundation for Credit Counseling.
- A payment plan from the company you owe, if you ask before you miss a payment.
- 211 for help with rent, utilities and food: call 211 or visit 211.org.
More cheaper options in New York.
Other loan types allowed in New York
Personal loans in nearby states
- VermontAllowed 24% APR (top tier)
- ConnecticutAllowed 36% APR (top tier)
- PennsylvaniaAllowed 24% APR
- New JerseyAllowed 30% APR
- New HampshireAllowed 36% APR
Sources
- legalclarity.org/new-york-usury-law-interest-rate-limits-and-penalties. Retrieved September 23, 2026.
- dfs.ny.gov. N.Y. Banking Law 340-361. Retrieved September 23, 2026.
- nysenate.gov/legislation/bills/2025/S10390. Retrieved September 23, 2026.
- National Low Income Housing Coalition. Out of Reach 2026: New York. Retrieved September 23, 2026.
- U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.
Important disclosures
APRs vary by lender and state in New York. Each lender sets its own rates and terms and must show you the APR before you sign.
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