MA state reference
Massachusetts lending rules
Massachusetts has 54 Census places covered on Personalloaned, with a combined estimated population of 3,652,204. Personal-loan terms in Massachusetts are set by licensed lenders under state law; the sourced rules below apply to every borrower in the state.
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- Usury cap 20% per annum criminal-usury threshold (M.G.L. c. 271, § 49); statutory exceptions apply
- Payday lending Restricted: DOB states payday lending is not prohibited, but a 'payday loan' is illegal due to the high APR
- State regulator Division of Banks (Office of the Commissioner of Banks)
Sourced rules
Key rules for borrowers in Massachusetts
| Rule | Detail | Source |
|---|---|---|
| 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 |
Cities in Massachusetts
We cover 54 Census places in Massachusetts. The count and the combined population figures are summed from the US Census Bureau's Vintage 2023 subcounty population estimates (retrieved 2026-09-17).
Common questions