Connecticut Short-term Loan Terms and Rules in 2025

Common Capital is a Help Organization dedicated to providing the public with comprehensive, accurate, and accessible online information about payday loans in Connecticut

Table of content
Jump to

Short-term Loans Terms in Connecticut

Legal Status Illegal
Interest Rate (APR) 12% usury cap

Top Personal Loan Lenders in Connecticut

Lender
User Ratings
Branches
Cities
Category
loanDepot
User Raiting:
5.00
Branches: 3
Cities: 3
Category: Financial institution
Stifel
User Raiting:
5.00
Branches: 3
Cities: 3
Category: Financial institution
U.S. Bank
User Raiting:
5.00
Branches: 7
Cities: 3
Category: Financial institution
Homestead Funding Corp
User Raiting:
5.00
Branches: 2
Cities: 1
Category: Loan agency
Fairway
User Raiting:
5.00
Branches: 4
Cities: 3
Category: Financial institution
Movement Mortgage
User Raiting:
4.97
Branches: 9
Cities: 4
Category: Financial institution
Evolve Bank & Trust Home Loan Center
User Raiting:
4.97
Branches: 4
Cities: 4
Category: Financial institution
The Milford Bank
User Raiting:
4.95
Branches: 3
Cities: 3
Category: Bank
Guaranteed Rate Affinity
User Raiting:
4.92
Branches: 9
Cities: 9
Category: Financial institution
Total Mortgage
User Raiting:
4.92
Branches: 5
Cities: 5
Category: Financial institution
Envoy Mortgage
User Raiting:
4.92
Branches: 7
Cities: 6
Category: Financial institution
Guaranteed Rate
User Raiting:
4.83
Branches: 17
Cities: 6
Category: Financial institution
Bankwell
User Raiting:
4.47
Branches: 11
Cities: 8
Category: Bank
First County Bank
User Raiting:
4.32
Branches: 5
Cities: 3
Category: Bank
Thomaston Savings Bank
User Raiting:
4.25
Branches: 13
Cities: 11
Category: Bank
Torrington Savings Bank
User Raiting:
4.17
Branches: 6
Cities: 6
Category: Bank
Centreville Bank
User Raiting:
4.10
Branches: 5
Cities: 5
Category: Bank
Guild Mortgage
User Raiting:
4.10
Branches: 5
Cities: 2
Category: Financial institution
Chelsea Groton Bank
User Raiting:
4.02
Branches: 6
Cities: 6
Category: Bank
Patriot Bank
User Raiting:
4.00
Branches: 7
Cities: 7
Category: Bank
Union Savings Bank
User Raiting:
3.99
Branches: 11
Cities: 10
Category: Bank
Savings Bank of Danbury
User Raiting:
3.96
Branches: 13
Cities: 8
Category: Bank
Sikorsky Credit Union
User Raiting:
3.94
Branches: 5
Cities: 5
Category: Credit union
Webster Bank
User Raiting:
3.91
Branches: 23
Cities: 20
Category: Bank
Eastern Connecticut Savings Bank
User Raiting:
3.88
Branches: 4
Cities: 3
Category: Bank
Northwest Community Bank
User Raiting:
3.75
Branches: 4
Cities: 4
Category: Bank
Citizens Bank
User Raiting:
3.73
Branches: 26
Cities: 20
Category: Financial institution
Hartford Federal Credit Union
User Raiting:
3.70
Branches: 5
Cities: 5
Category: Credit union
Ion Bank
User Raiting:
3.68
Branches: 6
Cities: 5
Category: Bank
Charter Oak Federal Credit Union
User Raiting:
3.67
Branches: 11
Cities: 9
Category: Financial institution
Santander
User Raiting:
3.67
Branches: 4
Cities: 4
Category: Bank
United Check Cashing
User Raiting:
3.60
Branches: 3
Cities: 2
Category: Check cash
Liberty Bank
User Raiting:
3.60
Branches: 26
Cities: 25
Category: Bank
Wells Fargo
User Raiting:
3.56
Branches: 16
Cities: 15
Category: Financial institution
JPMorgan Chase
User Raiting:
3.49
Branches: 28
Cities: 19
Category: Financial institution
M&T Bank
User Raiting:
3.34
Branches: 106
Cities: 66
Category: Financial institution
TD Bank
User Raiting:
3.30
Branches: 16
Cities: 14
Category: Financial institution
Nutmeg State Financial Credit Union
User Raiting:
3.25
Branches: 6
Cities: 6
Category: Credit union
Citi
User Raiting:
3.20
Branches: 2
Cities: 2
Category: Bank
KeyBank
User Raiting:
3.07
Branches: 36
Cities: 35
Category: Bank
Berkshire Bank
User Raiting:
3.00
Branches: 12
Cities: 12
Category: Bank
Bank of America
User Raiting:
2.63
Branches: 30
Cities: 26
Category: Financial institution
Flagstar
User Raiting:
2.33
Branches: 5
Cities: 4
Category: Bank
Advance Financial
User Raiting:
1.70
Branches: 14
Cities: 13
Category: Financial institution

Short-term Loan Regulations in Connecticut

Unlike many states, Connecticut has imposed significant restrictions on payday lending, effectively making these high-interest loans unavailable within the state. The regulations surrounding payday loans here are stringent, reflecting the state's commitment to protecting consumers from potentially predatory lending practices.

Connecticut's approach to regulating short-term, high-interest loans is to cap the general usury rate. According to the Connecticut General Statutes, the interest rate for loans is capped at 12% per year, which is significantly lower than typical payday loan rates. This cap makes traditional payday lending unprofitable in the state. Additionally, the Connecticut Department of Banking has issued guidance that all lenders must have a license to operate in the state, and they must adhere to the state's small loan laws and usury limits.

Furthermore, Connecticut's regulations are supported by federal laws like the Truth in Lending Act (TILA), which mandates that lenders disclose the cost of a loan to borrowers. This act ensures that borrowers are fully informed about the interest and fees they will be charged before they agree to the loan.

For more comprehensive information on the regulations and consumer protections in place, you can visit the Connecticut General Assembly website and the Consumer Financial Protection Bureau. These resources offer detailed insights into both state and federal lending laws, helping consumers and lenders alike understand their rights and responsibilities.

What Are the Alternatives for Short-term Loans in Connecticut?

Alternatives to payday loans include small personal loans from banks or credit unions, credit counseling services, budgeting and financial planning, community assistance programs, and exploring employer paycheck advances.

Guaranteed Installment Loans

Guaranteed installment loans offer a fixed repayment schedule over a set period, often with lower APRs than payday loans. These loans are suitable for those who need a predictable repayment plan. Requirements typically include a stable income and a credit check. They provide a more structured financial solution compared to the high-interest, short-term nature of payday loans.

Fast Title Loans

Fast title loans in Connecticut are secured loans where the borrower's vehicle title is used as collateral. They provide quick access to funds, often the same day. However, they come with the risk of losing your vehicle if you default. These loans differ from payday loans as they require collateral and usually offer higher loan amounts.

Emergency Loan Without a Bank Account

Emergency loans for individuals without a bank account can include certain payday or title loan options. These loans are accessible but often come with high-interest rates. It's important to review the terms carefully and consider alternatives such as community assistance programs or credit unions.

Debt Consolidation Loan

Debt consolidation loans in Connecticut allow individuals to combine multiple debts into a single, typically lower-interest loan. This is a stark contrast to payday loans, which are short-term and high-interest. A debt consolidation loan offers a manageable way to pay off debts over a longer period.

Instant Personal Loans

Instant Personal Loans are a quick financial solution for urgent needs in Connecticut, with processing often completed within a day. Applicants need to show stable income, have a valid ID, and an active bank account. These loans, typically offering lower interest rates and longer repayment terms than payday loans, provide a more affordable and manageable option.

Cash Loans with No Credit

Cash loans for those with no credit are designed for individuals lacking a credit history. These loans are more accessible than traditional loans but typically come with higher interest rates. They differ from payday loans in terms of potentially helping to build or improve a borrower's credit score.

Bad Credit Loans

Bad credit loans cater to Connecticut residents with poor credit scores. These loans are more accessible than conventional loans but often carry higher interest rates. Unlike payday loans, they can offer larger amounts and longer repayment terms, providing a practical option for those seeking to improve their credit status.

Quick P2P Loans

Quick peer-to-peer (P2P) loans are facilitated through online platforms that connect borrowers directly with individual lenders. These loans often offer more flexibility and competitive rates compared to traditional payday loans. P2P lending provides a unique alternative, potentially offering better terms for borrowers with diverse credit backgrounds.

Basic Information about Connecticut State

Metrics
Value
State Capital
Hartford
Population
Approximately 3.6 million
Location
Connecticut is located in the northeastern United States, part of the New England region, bordered by New York, Rhode Island, and Massachusetts.
Largest City by Population
Bridgeport
Biggest National Parks
Weir Farm National Historic Site, Appalachian National Scenic Trail

Submit a Complaint against a Lender in Connecticut

If you need to submit a complaint against a payday lender, the Connecticut Department of Banking is the regulatory authority that can assist. This department oversees financial institutions and consumer credit matters, including issues related to payday loans.

  • 260 Constitution Plaza, Hartford, Connecticut 06103-1800
  • (860) 240-8299 or Toll-free: 1-800-831-7225
Submit a Complaint

FAQ

Are Payday Loans Legal in Connecticut?

No, payday loans are illegal in Connecticut. The state has laws in place that prohibit high-interest payday loans to protect consumers from potentially predatory lending practices.

What are Some Safer Alternatives to Payday Loans in Connecticut?

In Connecticut, safer alternatives to payday loans include personal loans from banks or credit unions, credit card cash advances, borrowing from friends or family, or small-dollar loans from reputable financial institutions. These options are typically more consumer-friendly and offer more favorable terms.

How Can I Report Illegal Payday Lending?

If you come across a lender offering payday loans, you should report them to the Connecticut Department of Banking. Reporting such activities helps enforce consumer protection laws and safeguards other consumers.

What Should I Consider Before Taking Out Short-Term Loans?

Before taking out short-term loans in Connecticut, it's important to review the interest rates, fees, and repayment terms. Ensure that the lender is licensed and that the loan terms comply with state regulations.

Where Can I Find Financial Advice and Assistance in Connecticut?

For financial advice and assistance, resources such as the Connecticut Legal Services can be very helpful. These organizations provide guidance on budgeting, debt management, and financial planning.

How Can I Improve My Financial Situation to Avoid High-Interest Loans?

Improving your financial situation in Connecticut involves creating a budget, building an emergency fund, reducing unnecessary expenses, and educating yourself about personal finance. Seeking advice from financial advisors can also help in making informed financial decisions and avoiding high-interest loans.

Connecticut Short-term Loans Near Me

Amston Ansonia Avon Bantam Beacon Falls Berlin Bethany Bethel Bethlehem Bloomfield Bozrah Branford Bridgeport Bristol Britain Broad Brook Brookfield Brooklyn Burlington Canaan Canterbury Canton Centerbrook Cheshire Clinton Colchester Cornwall Bridge Cos Cob Coventry Cromwell Danbury Danielson Darien Dayville Deep River Derby Durham East Berlin East Granby East Hampton East Hartford East Haven East Lyme East Windsor Eastford Easton Ellington Enfield Essex Fairfield Falls Village Farmington Gales Ferry Glastonbury Goshen Granby Greenwich Griswold Grosvenor Dale Groton Guilford Haddam Hamden Hartford Harwinton Haven Hebron Higganum Hill Ivoryton Jewett City Kensington Kent Killingworth Lakeville Lebanon Ledyard Litchfield London Lyme Madison Manchester Mansfield Mansfield Center Marlborough Meriden Middlebury Middlefield Middletown Milford Monroe Montville Moodus Moosup Morris Mystic Naugatuck New Britain New Canaan New Fairfield New Hartford New Haven New London New Milford Newington Newtown Niantic Norfolk Historic District Noroton Heights North Branford North Haven North Stonington North Windham Northford Norwalk Norwich Oakdale Oakville Old Greenwich Old Lyme Old Mystic Old Saybrook Orange Oxford Pawcatuck Plainfield Plainville Plantsville Plymouth Pomfret Center Preston Prospect Putnam Quaker Hill Redding Ridgefield Riverside Rockville Rocky Hill Roxbury Salem Salisbury Seymour Sharon Shelton Sherman Simsbury Somers South Glastonbury South Lyme South Windsor Southbury Southington Southport Stafford Stafford Springs Stamford Stonington Storrs Stratford Suffield Taftville Tariffville Terryville Thomaston Tolland Torrington Trumbull Uncasville Unionville Vernon Wallingford Washington Washington Depot Waterbury Waterford Watertown Weatogue West Hartford West Haven West Simsbury West Suffield Westbrook Weston Westport Wethersfield Willimantic Wilton Windsor Windsor Locks Winsted Wolcott Woodbridge Woodbury Woodstock Yantic