Personalloaner

Massachusetts lending rules

Personalloaner covers 54 Census places in Massachusetts, which together hold an estimated 3,652,204 people. Licensed lenders set personal-loan terms here under Massachusetts law, and the sourced rules below reach every borrower in the state.

By the Personalloaner Editorial Team · Last updated 2026-09-16

Compare loan offers Run the numbers first

How we get paid: if you apply through the link above, a lending partner may send us a referral fee. It never changes the rate you are offered or what we publish. We are not a lender and we do not process applications. The lowest rates are only available to the most qualified applicants. Full disclosure.

Key rules for borrowers in Massachusetts

RuleDetailSource
Maximum legal interest rate (usury cap) 20% per annum criminal-usury threshold (M.G.L. c. 271, § 49); statutory exceptions apply
Source says: "interest and expenses the aggregate of which exceeds an amount greater than twenty per centum per annum upon the sum loaned"		 Massachusetts General Court
as of 2026-09-16
Payday lending status Restricted: DOB states payday lending is not prohibited, but a 'payday loan' is illegal due to the high APR
Source says: "Payday lending is not prohibited in Massachusetts. Yet what is referred to as a 'payday loan' is illegal"		 Massachusetts Division of Banks
as of 2026-09-16
Small-loan / installment lender licensing Small-loan license required for loans of $6,000 or less when interest and expenses exceed 12% per year (M.G.L. c. 140, § 96)
Source says: "No person shall directly or indirectly engage in the business of making loans of six thousand dollars or less ... without first obtaining ... a license"		 Massachusetts General Court
as of 2026-09-16
State lending regulator Division of Banks (Office of the Commissioner of Banks)
Source says: "The Division of Banks (DOB) cautions you when applying for a payday loan"		 Massachusetts Division of Banks
as of 2026-09-16
Small-loan rate order Maximum 23% per annum plus a $20 administrative fee (209 CMR 26.00/26.01)
Source says: "Regulation 209 CMR 26.00 et seq. limits the annual interest rate that can be charged on small loans to 23%"		 Massachusetts Division of Banks
as of 2026-09-16

Places we cover in Massachusetts

The Census Bureau counts 54 places in Massachusetts, and the largest are linked below.

Compare personal loan offers Run the numbers first

How we get paid: if you apply through the link above, a lending partner may send us a referral fee. It never changes the rate you are offered or what we publish. We are not a lender and we do not process applications. The lowest rates are only available to the most qualified applicants. Full disclosure.

Common questions

How high can interest rates legally go in Massachusetts?
The answer turns on the product and on which statute applies to it. This page's table sets out Massachusetts's usury cap and licensing rules, and each row carries its publisher and a link to the primary source.
What is Massachusetts's position on payday lending?
Each state handles payday lending on its own: some permit it, some cap it, some prohibit it. The sourced row on this page gives Massachusetts's current position.
How do I know a lender is licensed in Massachusetts?
Consumer lenders generally need a licence issued by the state regulator identified on this page. Verify that licence with the regulator before you commit to anything.

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