Loans in Massachusetts: payday, personal & title loan laws (2026)

Payday loans are effectively illegal in Massachusetts. Loans of $6,000 or less costing more than 12% a year require a small loan license, and licensed lenders are capped at 23% a year plus a $20 fee; above that, the state's criminal usury law bars charging more than 20% a year (with limited exceptions).

Licensed small loan companies may charge no more than 23% a year on the unpaid balance (actuarial method), plus a $20 administrative fee when the loan is made. The $20 fee may be charged no more than once in any 12-month period.

High-cost car title loans are not allowed in Massachusetts. Loans of $6,000 or less are subject to the small loan license and 23%-plus-$20 cap, and the criminal usury law bars charging more than 20% a year on other loans (with limited exceptions).

Licensed small loan companies may charge no more than 23% a year on the unpaid balance (actuarial method), plus a $20 administrative fee when the loan is made. The $20 fee may be charged no more than once in any 12-month period. On other loans, charging interest and expenses above 20% a year is criminal usury.

23% APR plus $20 fee on loans up to $6,000; 20% usury above.

Yes. A license from the Commissioner of Banks is required to make loans of $6,000 or less costing more than 12% a year. A loan applied for by someone in Massachusetts is treated as made in Massachusetts even if the money comes from out of state.