AN ACT RELATING TO FINANCIAL INSTITUTIONS -- SMALL LOAN LENDERS (Allows a lender to charge an origination fee, increase interest rates and collect a monthly service fee, on loans up to three hundred dollars ($300) but not exceeding five thousand dollars ($5,000).)

S3074

2026 -- S 3074
========
LC006021
========

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

Introduced By:
Senators Britto, and Burke

Date Introduced:
March 13, 2026

Referred To:
Senate Commerce
It is enacted by the General Assembly as follows:
1
SECTION 1. Sections 19-14.2-8 and 19-14.2-12 of the General Laws in Chapter 19-14.2
2
entitled "Small Loan Lenders" are hereby amended to read as follows:
3

19-14.2-8. Maximum loan and interest rate.
4
Every small loan lender may
charge an origination fee the lesser of one hundred dollars
5
($100) or up to five percent (5%) of the amount borrowed and
lend up to five thousand dollars
6
($5,000) in the aggregate to one borrower and may charge, contract for, and receive on the loan
7
interest on the unpaid principal balance on a loan at a rate not exceeding the following:
8
(1) Loans up to and including three hundred dollars ($300),
three percent (3%)

five percent
9
(5%)
per month
plus a monthly service fee up to five dollars ($5.00)
;
10
(2) Loans exceeding three hundred dollars ($300) but not exceeding eight hundred dollars
11
($800),
two and one-half percent (2.5%)

four and one-half percent (4.5%)
per month
plus a monthly
12
service fee up to ten dollars ($10.00)
; and
13
(3) Loans exceeding eight hundred dollars ($800), but not exceeding five thousand dollars
14
($5,000),
two percent (2%)

four percent (4%)
per month
plus a monthly service fee up to thirty
15
dollars ($30.00)
.
16

19-14.2-12. Small loans — No other charges — Exception.
17
In addition to the interest
and fees
allowed in this chapter, no small loan licensee shall
18
directly, or indirectly, charge, contract for, or receive any other charges except credit insurance,
19
lawful filing fees and insurance charges, and other fees listed in § 6-26-2(c) or as authorized by

1
regulation.
2
SECTION 2. This act shall take effect upon passage.
========
LC006021
========

LC006021 - Page 2 of 3
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO FINANCIAL INSTITUTIONS -- SMALL LOAN LENDERS
***
1
This act would allow a lender to charge an origination fee, increase interest rates and collect
2
a monthly service fee, on loans up to three hundred dollars ($300) but not exceeding five thousand
3
dollars ($5,000).
4
This act would take effect upon passage.
========
LC006021
========

LC006021 - Page 3 of 3