Personalloaner

Michigan lending rules

Personalloaner covers 533 Census places in Michigan, which together hold an estimated 5,043,882 people. Licensed lenders set personal-loan terms here under Michigan 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 Michigan

RuleDetailSource
Maximum legal interest rate (usury cap) 7% per annum maximum by written agreement; 5% legal rate (MCL 438.31)
Source says: "it shall be lawful for the parties to stipulate in writing for the payment of any rate of interest, not exceeding 7% per annum"		 Michigan Legislature
as of 2026-09-16
Payday lending status Legal and licensed — deferred presentment service transactions (2005 PA 244; MCL 487.2121 et seq.), licensed and regulated by DIFS
Source says: "AN ACT to regulate the business of providing deferred presentment service transactions; to require the licensing of providers of deferred presentment service transactions"		 Michigan Legislature
as of 2026-09-16
Small-loan / installment lender licensing License required from the commissioner to make regulated loans (Regulatory Loan Act, MCL 493.1 et seq.)
Source says: "a person shall not engage in the business of making loans of money ... without first obtaining a license from the commissioner"		 Michigan Legislature
as of 2026-09-16
State lending regulator Michigan Department of Insurance and Financial Services (DIFS)
Source says: ""Department" means the department of insurance and financial services"		 Michigan Legislature
as of 2026-09-16
Regulated lender interest/finance charge cap 25% per annum (Credit Reform Act, MCL 445.1854(1))
Source says: "may charge, collect, and receive any rate of interest or finance charge for an extension of credit not to exceed 25% per annum"		 Michigan Legislature
as of 2026-09-16

Places we cover in Michigan

The Census Bureau counts 533 places in Michigan, 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 Michigan?
The answer turns on the product and on which statute applies to it. This page's table sets out Michigan's usury cap and licensing rules, and each row carries its publisher and a link to the primary source.
What is Michigan'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 Michigan's current position.
How do I know a lender is licensed in Michigan?
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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