2026 -- H 7868

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LC005707

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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: Representatives Serpa, and Fellela

     Date Introduced: February 27, 2026

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 19-14.2-8 and 19-14.2-12 of the General Laws in Chapter 19-14.2

entitled "Small Loan Lenders" are hereby amended to read as follows:

     19-14.2-8. Maximum loan and interest rate.

     Every small loan lender may charge an origination fee the lesser of one hundred dollars

($100) or up to five percent (5%) of the amount borrowed and lend up to five thousand dollars

($5,000) in the aggregate to one borrower and may charge, contract for, and receive on the loan

interest on the unpaid principal balance on a loan at a rate not exceeding the following:

     (1) Loans up to and including three hundred dollars ($300), three percent (3%) five percent

(5%) per month plus a monthly service fee up to five dollars ($5.00);

     (2) Loans exceeding three hundred dollars ($300) but not exceeding eight hundred dollars

($800), two and one-half percent (2.5%) four and one-half percent (4.5%) per month plus a monthly

service fee up to ten dollars ($10.00); and

     (3) Loans exceeding eight hundred dollars ($800), but not exceeding five thousand dollars

($5,000), two percent (2%) four percent (4%) per month plus a monthly service fee up to thirty

dollars ($30.00).

     19-14.2-12. Small loans — No other charges — Exception.

     In addition to the interest and fees allowed in this chapter, no small loan licensee shall

directly, or indirectly, charge, contract for, or receive any other charges except credit insurance,

lawful filing fees and insurance charges, and other fees listed in § 6-26-2(c) or as authorized by

regulation.

     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 allow 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).

     This act would take effect upon passage.

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LC005707

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