Payday loans in Massachusetts: what's allowed instead
Census ACS 2020–2024 5-year estimates; NCUA June 2026 call report; FDIC BankFind, Oct 2026.
Massachusetts payday loan rules at a glance
| Governing law | Massachusetts small loan law, M.G.L. c. 140, §§ 96-114. Anyone making loans of $6,000 or less that cost more than 12% a year in interest and expenses must be licensed by the Commissioner of Banks. A loan made by an unlicensed lender in violation of these sections is void, and unlicensed lending is a crime. (M.G.L. c. 140, §§ 96, 110) |
|---|---|
| Fees / interest 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)) |
Your options in Massachusetts
Payday loans aren't offered by state-licensed lenders here, but you can still request a personal installment loan of $100 to $5,000 through our form. Installment loans spread repayment over several months, so each payment is smaller. See Massachusetts personal loans.
Credit services / credit access businesses
A broker or arranger model cannot avoid the cap: brokerage fees and commissions paid to anyone in connection with the loan are counted in the 12% licensing threshold and the rate limit. (M.G.L. c. 140, § 96)
Compare neighboring states
Lenders must follow the law of the state where you live, not where you visit.
| State | Status | Max loan |
|---|---|---|
| Connecticut | Not available | — |
| New Hampshire | Not available | A borrower may not owe a lender more than $500 in payday loan principal at one time. |
| New York | Not available | — |
| Rhode Island | Legal | The check may not exceed $500, and a lender and its affiliates may hold no more than $500 in total outstanding checks… |
| Vermont | Not available | — |
Personal loans by city in Massachusetts
Counties in Massachusetts
Show all 14 counties
Also see: Personal Loans in Massachusetts · Title Loans in Massachusetts · All Massachusetts loan options
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.
What do I need to get a payday loan in Massachusetts?
Most lenders ask for a few basics: you must be a legal adult, with a valid government-issued ID, a steady source of income, an active checking account in your name, and a phone number and email. Some lenders also ask for recent pay stubs or bank statements. Having these ready makes our 3-minute form quick, and many Massachusetts applicants get a decision in minutes.
Can I get a payday loan on the weekend in Massachusetts?
You can submit our online form any time, including nights and weekends, and some lenders review requests right away. Funding depends on banking days, though, so money requested on a Saturday or Sunday typically arrives the next business day. Submitting early helps you get in line for the first available deposit. Massachusetts residents can start a request now; it takes about 3 minutes.
Can I get a payday loan online in Massachusetts?
Yes. You can request a payday loan online from anywhere in Massachusetts, using your phone or computer. Our secure form takes about 3 minutes and connects you with lenders in our network that serve Massachusetts residents. If you're approved, funds go straight to your checking account, often by the next business day. There's no cost to apply and no obligation to accept.
Do payday loans in Massachusetts affect your credit score?
Usually only a little, if at all. Because many payday lenders don't use a traditional hard credit pull and often don't report to the major bureaus, a payday loan repaid on time typically has little effect on your score. A balance that goes unpaid and reaches collections could hurt it, so borrow an amount you can repay on your due date. Massachusetts residents can see their options with our 3-minute form.