Massachusetts at a glance
- Personal loansAllowed 23% APR
- Installment loansAllowed 23% APR
- Emergency loansAllowed 23% APR
- Payday loansNot allowed
- Title loansNot allowed
Loan options in Massachusetts
Every loan type we cover is listed, including the ones Massachusetts law does not allow, so you can see why and what else can work.
- Personal loansAllowedA lump sum you repay in fixed monthly payments. See what your state allows and what a loan can cost.
- Installment loansAllowedFixed payments over months, not weeks. See your state's rate limits and a worked cost example.
- Emergency loansAllowedMoney for an urgent bill, usually a smaller installment loan. Check your state's limits before you borrow.
- Payday loansNot allowedA short loan usually due in one payment on your next payday. Allowed in fewer states, so read the fee limits first.
- Title loansNot allowedA loan secured by your car title. Allowed in fewer states, and your car is at risk if you cannot repay.
Other ways to borrow
- Credit union payday alternative loans: small loans from federal credit unions with an APR capped at 28% under NCUA rules. (12 CFR 701.21)
- 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.
- Payment plans: many utilities, hospitals and lenders offer hardship plans if you ask before you miss a payment.
What a loan can cost in Massachusetts
Worked examples at an illustrative rate, never above Massachusetts's rate cap for that loan amount where the law sets one. They are examples, 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 places to turn in Massachusetts, each linked to its official source and dated when we last checked it.
Lending regulator and complaints
Massachusetts Division of Banks (DOB) licenses lenders in Massachusetts. Check a lender's license here, and file a complaint if something goes wrong.
Check a lender's license File a complaint
mass.gov Checked September 23, 2026
211
Call 211 or visit your local 211 site to reach help with rent, utilities, food and other urgent bills.
mass211.org Checked September 23, 2026
Legal aid
Free civil legal help for people with low incomes, including debt collection, repossession and eviction problems. Income limits vary.
masslrf.org Checked September 23, 2026
Nonprofit credit counseling
Nonprofit counselors can help you build a budget or set up a debt management plan. Look for an NFCC or FCAA member agency.
nfcc.org Checked September 23, 2026
Benefits portal
The official site for checking whether you qualify for food, cash or other benefits in Massachusetts, and for signing up.
dtaconnect.eohhs.mass.gov Checked September 23, 2026
Federal complaints
Submit a complaint 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.
- Nonprofit credit counseling. A counselor accredited by the National Foundation for Credit Counseling can help you build a budget or a debt management plan.
- 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.
- Local assistance. Call 211, or visit 211.org, for emergency help with rent, utilities and food in Massachusetts.
The rules lenders follow in Massachusetts
These rules protect you as a borrower and explain the labels above. Each one links to the source we took it from. 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 issued by the Massachusetts Division of Banks | 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 | treat this citation as unverified. |
| 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.
Money snapshot for Massachusetts
Guides for Massachusetts borrowers
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.
Can I get a loan in Massachusetts with a 500 credit score?
Lenders look at more than your score, such as income and existing debts, and each sets its own rules. BadCreditMD cannot tell you whether a lender will approve you.
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. Census Bureau, Population Division. Vintage 2024 National and State Population Estimates. 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
Illustrative range for installment loans in Massachusetts: APRs from 5.99% to 23%, where the state APR cap is 23%. This range is not a quote; each lender sets its own rates. Your APR depends on your credit, income, state and the lender.
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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.