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Rates and rules

New Jersey Loan Rates and Rules

Who regulates consumer lending in New Jersey, how rates are set, and how to check a lender and its rate before you borrow. For new requests SET Financial is not the lender: it connects New Jersey residents with third-party lenders who set all rates and terms.

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This page is general information, not a rate quote. Not everyone who applies will be matched or approved.

Who regulates consumer lending in New Jersey

New Jersey has a strict usury environment. Consumer lenders that make loans of $50,000 or less for personal, family, or household use are generally licensed under the New Jersey Consumer Finance Licensing Act (N.J.S.A. 17:11C-1 et seq.) and overseen by the New Jersey Department of Banking and Insurance. Under state usury law, the general civil rate ceiling on a written loan contract is 16 percent, and charging 30 percent or more to an individual can constitute criminal usury, though various lender types and loan categories fall under separate rules and exemptions. SET Financial does not set rates. Your actual APR, fees, and terms are set solely by the third-party lender you are matched with, and you should confirm them before you sign.

Regulator: New Jersey Department of Banking and Insurance (Division of Banking, Office of Consumer Finance).

How to check a lender before you borrow

Before you accept any offer, confirm the lender's New Jersey licensing status with the Department of Banking and Insurance and review the exact APR, fees, and repayment terms written in your loan agreement.

Many consumer lenders are also listed on NMLS Consumer Access, a national database you can search for free to confirm a company's license status and history.

Search NMLS Consumer Access

The four numbers to compare on any offer

A regulator's rules tell you about the lender. These tell you about the loan. Whoever you borrow from, and whether or not you use this site, compare offers on the same four things:

  • APR. The annualized cost including most fees. It is the only number that lets you compare two different loans honestly.
  • Total repayment amount. Principal plus every finance charge over the full term. A lower monthly payment stretched longer often costs more overall.
  • Term and payment schedule. How many payments, how often, and the exact due dates measured against when you actually get paid.
  • Fees and prepayment terms. Origination, late, and returned-payment fees, and whether paying the loan off early saves you interest.

Your loan agreement is the number that governs

Federal Truth in Lending rules require the lender to disclose the APR, finance charge, amount financed, and total of payments on the loan agreement before you sign. Any rate you see in marketing, including on this site, is general information. The figures on your own signed agreement are what actually apply to your loan.

Common questions about New Jersey rates

Who regulates consumer installment lenders in New Jersey?

Consumer lenders making loans of $50,000 or less for personal, family, or household use are generally regulated by the New Jersey Department of Banking and Insurance under the New Jersey Consumer Finance Licensing Act (N.J.S.A. 17:11C-1 et seq.). You can verify a lender's license with the Department.

What interest rate can a lender charge in New Jersey?

New Jersey has a strict usury environment. The general civil ceiling on a written loan contract is 16 percent, and charging an individual 30 percent or more can be criminal usury, but different lender types and loan categories have separate rules and exemptions. Your actual APR is set by the lender, so always confirm it on your agreement.

This page is general information about New Jersey lending rules, not legal or financial advice, and it is not a rate quote. Rules change; confirm anything that matters to your situation with the New Jersey Department of Banking and Insurance (Division of Banking, Office of Consumer Finance) or a qualified advisor. SET Financial is not the lender on new requests and does not set the rates, fees, terms, or approval decisions of the third-party lenders in its network.

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