AN ACT RELATING TO FINANCIAL INSTITUTIONS -- SMALL LOAN LENDERS (Establishes a maximum per annum rate of interest on small loans at ninety-nine percent (99%) and limit the amounts of origination and closing fees. Also requires that late fees and returned payment fees be agreed to in writing between borrower and lender.)

H7724

2026 -- H 7724
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LC004648
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO FINANCIAL INSTITUTIONS -- SMALL LOAN LENDERS

Introduced By:
Representative Patricia A. Serpa

Date Introduced:
February 12, 2026

Referred To:
House Corporations
It is enacted by the General Assembly as follows:
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SECTION 1. Sections 19-14.2-8 and 19-14.2-12 of the General Laws in Chapter 19-14.2
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entitled "Small Loan Lenders" are hereby amended to read as follows:
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19-14.2-8. Maximum loan and interest rate.
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(a)
Every small loan lender may lend up to five thousand dollars ($5,000) in the aggregate
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to one borrower and may charge, contract for, and receive on the loan interest on the unpaid
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principal balance on a loan at a rate not exceeding
the following:
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(1) Loans up to and including three hundred dollars ($300), three percent (3%) per month;
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(2) Loans exceeding three hundred dollars ($300) but not exceeding eight hundred dollars
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($800), two and one-half percent (2.5%) per month; and
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(3) Loans exceeding eight hundred dollars ($800), but not exceeding five thousand dollars
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($5,000), two percent (2%) per month

ninety-nine percent (99%) per annum, inclusive of any
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origination and closing fee
.
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(b) Origination fees shall not be more than ten percent (10%) of the original loan amount.
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(c) Closing fees shall not be more than four percent (4%) of the original loan amount.
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(d) In addition to any other fees permitted in this chapter, the following fees shall be agreed
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to in writing between borrower and lender and are not included in the annual interest rate:
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(1) A late payment fee in the amount of five percent (5%) of the delinquent payment or
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eighteen dollars ($18.00), whichever is greater; and
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(2) A returned payment fee up to thirty dollars ($30.00).

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19-14.2-12. Small loans — No other charges — Exception.
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In addition to the interest
and fees
allowed in this chapter, no small loan licensee shall
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directly, or indirectly, charge, contract for, or receive any other charges except credit insurance,
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lawful filing fees and insurance charges, and other fees listed in § 6-26-2(c) or as authorized by
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regulation.
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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO FINANCIAL INSTITUTIONS -- SMALL LOAN LENDERS
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This act would establish a maximum per annum rate of interest on small loans at ninety-
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nine percent (99%) and limit the amounts of origination and closing fees. This act would also
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require that late fees and returned payment fees be agreed to in writing between borrower and
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lender.
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This act would take effect upon passage.
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LC004648
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LC004648 - Page 3 of 3