Installment Loans in New York

Amount and term limits

Banking Law §340 covers Article 9 licensed lending to individuals for personal, family, household, or investment purposes in principal amounts of $25,000 or less when the lender charges more than it could lawfully charge without the Article 9 license. The current PLS Cash Advance selector uses only the $200–$5,000 portion of that range.

The primary Article 9 sources used here do not establish one general minimum or maximum installment-loan term. Section 351 permits open-end and closed-end structures; precomputed closed-end loans may be repaid in substantially equal consecutive monthly installments.

Interest, fees and repayment

For lenders governed by New York’s general usury rule, Banking Law §14-a sets 16% per year. Article 9 addresses licensed lenders making covered personal loans above the otherwise permitted rate, and DFS has interpreted §§340 and 351 together with Penal Law §190.40 as allowing licensed lenders to charge up to 25% per year on covered personal loans. Banks, credit unions, and other institutions may operate under different state or federal authority.

Section 351 restricts additional charges beyond interest to specifically authorized items. The exact permitted charges depend on the loan structure and applicable subsection.

Article 9 allows open-end or closed-end agreements. When a closed-end loan uses precomputed interest, §351 provides for substantially equal consecutive monthly installments of principal and interest combined.

Rollovers, refinancing and early payment

Rollover allowed?

Not reduced to a yes/no rule
New York Article 9 does not use the payday-loan rollover model as the defining rule for these consumer loans. Refinancing or replacement loans must be evaluated under the applicable licensed-lender rules.

Prepayment penalty allowed?

Not reduced to a yes/no rule
For a precomputed closed-end Article 9 loan prepaid in full before the final installment date, §351 requires a refund of the unearned portion of precomputed interest, subject to the statute’s small-dollar exceptions. This page does not reduce all possible New York installment structures to a universal penalty yes/no field.

New York borrower protections

• Article 9 licensing applies to covered personal loans of $25,000 or less when the lender charges more than it could lawfully charge without the license.
• Section 351 restricts additional fees and charges beyond the interest framework to items specifically authorized by law.
• Precomputed closed-end loans require an unearned-interest refund when prepaid in full before maturity, subject to statutory small-dollar exceptions.
• Consumers can use DFS “Who We Supervise” to check whether a New York-regulated lender or institution appears in the regulator’s records.

New York loan cost calculator

How to verify a lender in New York

Regulator: New York State Department of Financial Services (DFS).

Article 9 Licensed Lender when the statutory licensing trigger applies; banks, credit unions, and other institutions may have separate charters or authority

Verify a lender license

Official sources

1. New York Banking Law §340 — Licensed lender requirement · primary
2. New York Banking Law §351 — Interest, repayment and other charges · primary
3. New York Banking Law §14-a — 16% general maximum rate · primary
4. New York General Obligations Law §5-501 — Usury framework · primary
5. New York Penal Law §190.40 — 25% criminal-usury threshold · primary
6. New York DFS — Information for Licensed Lenders · primary
7. New York DFS — Banking Law interpretation, April 11, 2005 · primary
8. New York DFS — Who We Supervise · primary

Last regulatory verification: 2026-09-06. Laws can change; verify current terms and lender status before borrowing. Read our research methodology.