Loans in Massachusetts: payday, personal & title loan laws (2026)
Payday Loans Not available
Payday loans are effectively illegal in Massachusetts.
Personal Loans
23% APR plus $20 fee on loans up to $6,000; 20% usury above.
Title Loans Not available
High-cost car title loans are not allowed in Massachusetts.
Massachusetts at a glance
Massachusetts loan rules side by side
Payday loans
| Rule | What the law says |
|---|---|
| Fee cap | 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. (209 CMR 26.01(1)(a)) |
Car title loans
| Rule | What the law says |
|---|---|
| Rate cap | 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. (209 CMR 26.01(1)(a); M.G.L. c. 271, § 49(a)) |
Personal loans
| Rule | What the law says |
|---|---|
| Rate cap | 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. After one year past the loan's maturity, interest may not exceed 6% a year. For loans not covered by the small loan law, charging more than 20% a year in interest and expenses is criminal usury unless an exception applies. (209 CMR 26.01(1)-(2); M.G.L. c. 271, § 49(a)) |
| License required | 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. (M.G.L. c. 140, § 96) |
| Origination fee | A $20 administrative fee when the loan is granted, no more than once in any 12-month period. All brokerage fees, commissions and other charges paid to anyone for making or securing the loan count toward the cost limit. (209 CMR 26.01(1)(a); M.G.L. c. 140, § 96) |
Rules last checked against the state sources on October 25, 2026.
Counties in Massachusetts
Cities in Massachusetts
Frequently asked questions
Are payday loans legal in Massachusetts?
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).
How much do payday loans cost in Massachusetts?
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.
Are title loans legal in Massachusetts?
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).
What interest can title lenders charge in Massachusetts?
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.
Is there a cap on personal loan interest rates in Massachusetts?
23% APR plus $20 fee on loans up to $6,000; 20% usury above.
Do personal loan lenders need a license in Massachusetts?
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.