Payday Loans in Massachusetts
Massachusetts DOB says payday lending itself is not categorically prohibited, but the high-cost product commonly called a payday loan is illegal because of its APR. Lawful small-dollar borrowing is routed through licensed small-loan companies, which are capped at 23% per annum plus a limited $20 administrative fee.
Massachusetts legal category: Payday-style borrowing subject to the Massachusetts Small Loan Law · Mass. Gen. Laws ch. 140 §§96–114A and 209 CMR 26.00 Small Loan Rate Order
Massachusetts payday loans at a glance
- Legal status
- Restricted
- Legal category
- Payday-style borrowing subject to the Massachusetts Small Loan Law
- Maximum amount in this regime
- $6,000
- Term
- No separate traditional payday term is encoded. A lawful small loan must comply with the Massachusetts Small Loan Law and contract requirements rather than a triple-digit short-term payday pricing model.
- Regulator
- Massachusetts Division of Banks (DOB)
- Verified
- 2026-09-07
Choose a loan type by amount
PLS Cash Advance currently presents request amounts from $200 to $5,000. The ranges below are navigation guidance between our state loan guides — not statutory limits, eligibility rules, or a promise of approval.
Payday Loans in Massachusetts
Route the current $200–$5,000 selector to the Massachusetts licensed installment/small-loan guide rather than to a traditional high-cost payday product.
Installment Loans in Massachusetts
Preferred route for the full current PLS Cash Advance amount selector because a licensed Massachusetts small loan can cover the entire $200–$5,000 range.
Amount and term limits
Massachusetts does not prohibit lending solely because a loan is short term, but a personal/family/household loan of $6,000 or less that exceeds the Small Loan Law licensing threshold must be made under the licensed small-loan framework. The high-cost product commonly marketed as a payday loan is illegal because of its APR.
No separate traditional payday term is encoded. A lawful small loan must comply with the Massachusetts Small Loan Law and contract requirements rather than a triple-digit short-term payday pricing model.
Interest, fees and repayment
Massachusetts DOB says the high-cost product normally called a payday loan is illegal due to the APR charged. The lawful small-loan ceiling is far lower than typical payday pricing.
A licensed small-loan company may charge up to 23% per annum on unpaid balances under the Small Loan Rate Order plus a $20 administrative fee when granting a loan; the administrative fee may not be assessed more than once in a 12-month period.
Repayment follows the licensed small-loan contract. The state does not provide a separate high-cost payday repayment route on this page.
Rollovers, refinancing and early payment
- Rollover allowed?
- No
The page does not present high-cost payday refinancing as a lawful product; any refinance of a Massachusetts small loan remains subject to the Small Loan Law and Rate Order. - Prepayment penalty allowed?
- Not reduced to a yes/no rule
Prepayment/refinancing rights depend on the lawful small-loan contract and Massachusetts rules; this page does not infer a universal payday prepayment charge.
Massachusetts borrower protections
- Small-dollar lenders making covered loans in Massachusetts must be licensed by the Division of Banks.
- The Small Loan Rate Order caps covered small-loan interest at 23% per annum.
- The permitted administrative fee is $20 and may not be assessed more than once in a 12-month period.
- Massachusetts DOB warns consumers that typical high-cost payday loans are illegal because of their APR.
How to verify a lender in Massachusetts
Regulator: Massachusetts Division of Banks (DOB).
Small Loan Company license for covered loans of $6,000 or less
Official sources
- Massachusetts DOB — Payday loans · primary
- Massachusetts General Laws ch. 140 §96 — Small loans · primary
- 209 CMR 26.00 — Small Loan Rate Order · primary
Last regulatory verification: 2026-09-07. Laws can change; verify current terms and lender status before borrowing. Read our research methodology.