A circuit including a low drop-out regulator (LDO) has a current control loop configured and connected to detect whether an external capacitor is connected to the output of the LDO. The current control loop includes a differential amplifier, a current source capable to output different reference currents and a small MOS transistor. The circuit may be operated in an output capacitor detection mode when started and in a regulated voltage source mode otherwise. In the output capacitor detection mode, the small MOS transistor is driven by the differential amplifier and drives the LDO's power MOS transistor depending on a difference between a current through the small MOS transistor and the reference current output by the current source. Components of the current control loop may be used during regulated voltage source mode for short circuit protection.