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 Rhode Island 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)
- 26.2%
- Repayment
- 12 monthly payments
- Payment
- $286.88
- Finance charge
- $442.56
- Total of payments
- $3,442.56
Example: a $3,000 installment loan at 26.2% APR repaid in 12 monthly payments of $286.88 costs $3,442.56 in total, including a finance charge of $442.56. 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)
- 29.99%
- Repayment
- 12 monthly payments
- Payment
- $97.48
- Finance charge
- $169.76
- Total of payments
- $1,169.76
Example: a $1,000 installment loan at 29.99% APR repaid in 12 monthly payments of $97.48 costs $1,169.76 in total, including a finance charge of $169.76. 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)
- 29.99%
- Repayment
- 12 monthly payments
- Payment
- $48.74
- Finance charge
- $84.88
- Total of payments
- $584.88
Example: a $500 installment loan at 29.99% APR repaid in 12 monthly payments of $48.74 costs $584.88 in total, including a finance charge of $84.88. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
What Rhode Island law allows
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Installment and personal loans[1][2] | Allowed | 36% APR (top tier) | Up to $5,000 | Up to 5 years | Small Loan Lender license | R.I. Gen. Laws Section 19-14.2-8 |
| 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
- Small Loan Lenders may charge, on the unpaid principal balance: 3% per month on the portion of the loan up to $300 (about 36% APR), 2.5% per month on the portion over $300 up to $800 (about 30% APR), and 2% per month on the portion over $800 up to $5,000 (about 24% APR).
- Fees
- Rate tiers above function as the fee cap.
- License
- Small Loan Lender license under R.I. Gen. Laws Chapter 19-14.2, Dept. of Business Regulation.
Full detail for every loan type: Rhode Island lending laws.
Help in Rhode Island
Rent and jobs in Rhode Island
Typical rent and the jobless rate, to weigh before a loan payment.
Other options in Rhode Island
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 Rhode Island.
Other loan types allowed in Rhode Island
- Installment loans in Rhode Island
- Emergency loans in Rhode Island
- Payday loans in Rhode Island No rate limit in state law
Personal loans in nearby states
- MassachusettsAllowed 23% APR
- ConnecticutAllowed 36% APR (top tier)
- New HampshireAllowed 36% APR
- VermontAllowed 24% APR (top tier)
- New JerseyAllowed 30% APR
Sources
- webserver.rilegislature.gov. R.I. Gen. Laws Section 19-14.2-8. Retrieved September 23, 2026.
- dbr.ri.gov. Rhode Island Department of Business Regulation (DBR), Division of Banking. Retrieved September 23, 2026.
- National Low Income Housing Coalition. Out of Reach 2026: Rhode Island. 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 Rhode Island. Each lender sets its own rates and terms and must show you the APR before you sign.
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