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✓ Legal & RegulatedReviewed: Aug 2025

MassachusettsLoan Laws & Regulations

Official regulatory reference for borrowers and lenders in Massachusetts. Includes permitted loan types, APR caps, lender licensing requirements, borrower rights, and government source links.

Max Loan
$5,000
Typical APR
23% APR
Max Term
36 months
Legal Status
Restricted
Payday LoansPersonal LoansCash AdvanceInstallment LoansBad Credit LoansSame-Day LoansNo Credit Check Loans

Massachusetts Lending Regulator

Primary Regulator
MA Division of Banks
https://www.mass.gov/orgs/division-of-banks

The MA Division of Banks oversees consumer lending in Massachusetts, including licensing, enforcement, and consumer complaint resolution. Before borrowing from any lender, verify their license using the official regulator lookup tool linked above.

Regulatory Details

Detailed regulatory data for Massachusetts is sourced directly from the MA Division of Banks. For the most current requirements, visit: https://www.mass.gov/orgs/division-of-banks

Current Overview

Massachusetts has some of the strongest consumer lending protections in the country. The state caps small-dollar loan rates at 23% APR under Chapter 140 licensing, which means traditional high-fee payday loans are effectively prohibited. Instead, MA residents can access regulated personal loans and cash advances through licensed lenders — with longer repayment terms, transparent fees, and real consumer protections enforced by the MA Division of Banks.

Legal Status: Restricted · APR Range: 23% APR · Max Amount: $5,000

Massachusetts Lending FAQ

Are payday loans legal in Massachusetts?▼
Yes. Payday loans are legal and regulated in Massachusetts under the oversight of the MA Division of Banks. Current APR range: 23% APR. Maximum loan: $5,000.
What is the maximum payday loan I can get in Massachusetts?▼
The maximum short-term loan amount in Massachusetts is $5,000. Example: A $1,500 personal loan in Massachusetts repaid over 12 months at 23% APR results in 12 monthly payments of approximately $142. Total repayment: ~$1,705. APR: 23%. All figures are illustrative — your actual rate and term depend on your lender's offer and MA law.
Who regulates payday lenders in Massachusetts?▼
The MA Division of Banks is the primary state regulator. You can verify any lender's license at https://www.mass.gov/orgs/division-of-banks. Unlicensed lenders operating in Massachusetts are illegal — always verify before borrowing.
What are the alternatives to payday loans in Massachusetts?▼
Consider credit union PAL (Payday Alternative Loan) programs, licensed personal loan lenders, or non-profit credit counseling services in Massachusetts.