What a loan can cost in Massachusetts
Examples at an illustrative rate, never above Massachusetts's cap for the amount. They are not quotes.
Representative example
- Amount borrowed
- $500
- Annual percentage rate (APR)
- 23%
- Repayment
- 12 monthly payments
- Payment
- $47.04
- Finance charge
- $64.48
- Total of payments
- $564.48
Example: a $500 installment loan at 23% APR repaid in 12 monthly payments of $47.04 costs $564.48 in total, including a finance charge of $64.48. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Representative example
- Amount borrowed
- $1,000
- Annual percentage rate (APR)
- 23%
- Repayment
- 12 monthly payments
- Payment
- $94.08
- Finance charge
- $128.96
- Total of payments
- $1,128.96
Example: a $1,000 installment loan at 23% APR repaid in 12 monthly payments of $94.08 costs $1,128.96 in total, including a finance charge of $128.96. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Representative example
- Amount borrowed
- $3,000
- Annual percentage rate (APR)
- 23%
- Repayment
- 12 monthly payments
- Payment
- $282.23
- Finance charge
- $386.76
- Total of payments
- $3,386.76
Example: a $3,000 installment loan at 23% APR repaid in 12 monthly payments of $282.23 costs $3,386.76 in total, including a finance charge of $386.76. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Resources in Massachusetts
Free and low-cost help in Massachusetts, each with its official link and the date we checked it.
Lending regulator and complaints
Massachusetts Division of Banks (DOB) licenses lenders in Massachusetts.
Check a lender's license File a complaint
mass.gov Checked September 23, 2026
211
Help with rent, utilities, food and other urgent bills.
mass211.org Checked September 23, 2026
Legal aid
Free civil legal help if your income is low; income limits vary.
masslrf.org Checked September 23, 2026
Nonprofit credit counseling
Help with a budget or a debt management plan.
nfcc.org Checked September 23, 2026
Benefits portal
Check whether you qualify for food, cash or other benefits in Massachusetts.
dtaconnect.eohhs.mass.gov Checked September 23, 2026
Federal complaints
Complaints about any lender, to the Consumer Financial Protection Bureau.
Submit a complaint to the CFPB
consumerfinance.gov Checked September 23, 2026 Available in Spanish
More Massachusetts resources appear here as we check each source.
Cheaper options to try first
Worth checking whatever your credit: these can cost less than a high-rate loan.
- Credit union payday alternative loans (PALs). Federal credit unions may offer small loans of up to $2,000 with terms of up to 12 months and an APR no higher than 28%, under NCUA rules (12 CFR 701.21). You usually need to be a member.
- Ask your creditor for a payment plan. Utilities, hospitals and many lenders offer hardship or extended payment plans if you ask before you miss a payment.
- Credit-builder loans: a small loan held in savings while you pay it off, which can help build a payment history.
- Secured credit cards: a card backed by a deposit you make, which can help build credit when you pay on time.
The rules lenders follow in Massachusetts
Each rule links to its source. How we research state rules.
Allowed in Massachusetts: installment and personal loans. Not allowed: title loans and payday loans.
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Installment and personal loans[1][2][3] | Allowed | 23% APR | Up to $6,000 | Not set by statute | Small Loan Company license | M.G.L. c. 140, sections 96-114A; 209 CMR 20.00 |
| Title loans[4][3] | Not allowed | Not allowed | Not set by statute | Not set by statute | None | See sources |
| Payday loans[5][1][3] | Not allowed | Not allowed | Not set by statute | At least 2 months | No payday-specific license | M.G.L. c. 140, sections 96-114A |
| Verified against the statute and regulator on September 23, 2026. Laws change; confirm with the regulator before you borrow. | ||||||
Bars place each APR cap on a 0 to 400% scale; the pin marks the cap. A striped bar means the statute sets no numeric cap.
Rate, fee and license rules in Massachusetts
Installment and personal loans
- Rate cap
- Small loans (loans of $6,000 or less at 12% APR or higher) require a Small Loan Company license and are capped at 23% APR under the Small Loan Rate Order issued under M.G.L. c. 140, section 96. Administrative fee capped at $20; no other finance charge permitted beyond the 23% rate and that fee.
- Fees
- Administrative fee not to exceed $20; no finance charge beyond the 23% APR and that fee.
- License
- Small Loan Company license issued by the Massachusetts Division of Banks (DOB), under 209 CMR 20.00 and M.G.L. c. 140, sections 96-114A.
Title loans
- License
- None; title-secured consumer loans are not an authorized lending product in Massachusetts regardless of the vehicle's lien status.
Payday loans
- Rate cap
- No separate payday product exists; the same 23% APR small-loan cap (M.G.L. c. 140, section 96 and the Small Loan Rate Order) applies to all small consumer loans, which makes fee-based payday lending unprofitable and effectively bans it.
- License
- No payday-specific license; a Small Loan Company license under the same 23% cap would be required for any short-term lender, making a standalone payday product commercially nonviable.
Rent and jobs in Massachusetts
Typical rent and the jobless rate, to weigh before a loan payment.
Guides for Massachusetts borrowers
By credit score
- Credit score 300 to 499
- Credit score 500 to 529
- Credit score 530 to 559
- Credit score 560 to 579
- Credit score 580 to 669
- Credit score 670 to 739
By amount
Articles about Massachusetts
Check your options in Massachusetts
Massachusetts questions
Does Massachusetts law allow payday loans?
Massachusetts law does not allow payday loans. Source: M.G.L. c. 140, sections 96-114A.
What is the most a lender can charge in Massachusetts?
By loan type in Massachusetts: Installment and personal loans: 23% APR. Title loans: Not allowed. Payday loans: Not allowed.
Where can I file a complaint about a lender in Massachusetts?
You can file a complaint with Massachusetts Division of Banks (DOB), and you can also submit one to the Consumer Financial Protection Bureau. Both links are under Resources in Massachusetts on this page.
How do I check a lender's license in Massachusetts?
Massachusetts Division of Banks (DOB) licenses lenders in Massachusetts. Use the license link under Resources in Massachusetts on this page to check a lender before you share your information.
Is there free help paying bills in Massachusetts?
Yes. Resources in Massachusetts on this page lists free help, including 211, legal aid, nonprofit credit counseling and benefits portal.
Nearby states
- Rhode IslandAllowed 36% APR (top tier)
- ConnecticutAllowed 36% APR (top tier)
- New HampshireAllowed 36% APR
- VermontAllowed 24% APR (top tier)
- New YorkAllowed 25% APR
Sources
- Justia. M.G.L. c. 140, sections 96-114A. Retrieved September 23, 2026.
- infobytes.orrick.com/2025-10-17/massachusetts-finalizes-amendments-to-small-loans-truth-in-lending-and-mortgage-licensing-regulations. Retrieved September 23, 2026.
- mass.gov. Massachusetts Division of Banks (DOB). Retrieved September 23, 2026.
- mass.gov/doc/nh-title-group-aod/download. Retrieved September 23, 2026.
- en.wikipedia.org/wiki/Payday_loans_in_the_United_States. Retrieved September 23, 2026.
- National Low Income Housing Coalition. Out of Reach 2026: Massachusetts. Retrieved September 23, 2026.
- U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.
Important disclosures
APRs vary by lender and state in Massachusetts. Each lender sets its own rates and terms and must show you the APR before you sign.
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- Questions about a lender licensed in Massachusetts? Contact the Massachusetts Division of Banks (DOB) or file a state complaint.
- You can submit a complaint about any lender to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.