Special situations

What's the personal loan APR cap in New York?

Short answer

New York has a 25% civil usury cap and a 16% criminal usury threshold for unsecured consumer loans. Unlicensed lenders charging above 16% commit a misdemeanour. Licensed lenders operating under New York's banking law can charge up to 25% with specific exceptions for small loans.

Context

New York's usury law is one of the strictest in the country. The 25% civil cap voids the contract; the 16% criminal cap is enforced through the Department of Financial Services. National lenders operating in New York must comply by either licensing as state banks or routing loans through partner banks under federal preemption.

For New York consumers, the practical effect is dramatically fewer lender options compared to neighbouring states, with all offered rates below 25%. The lender market is concentrated in established players rather than the broad subprime online lending market common in states without caps.

Editorial

Reviewed by: Compliance Review
Last reviewed: May 22, 2026

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