Payday loans in Michigan
Payday loans are legal in Michigan. A licensed lender may lend up to $600 and charge no more than 15% of first $100, 14% of second $100, 13% of third $100, 12% of fourth $100, 11% of fifth $100, 11% of sixth $100 +…. Every figure on this page was checked against Michigan law on November 10, 2026.
- Status
- Legal
- Maximum loan
- $600
- APR, 14-day loan
- 391%
Michigan payday loan rules at a glance
- Legal status
- Legal
- Maximum loan
- $600
- Loan term
- (No more than 31 days)
- Maximum fee
- 15% of first $100, 14% of second $100, 13% of third $100, 12% of fourth $100, 11% of fifth $100, 11% of sixth $100 + $1.35 database verification fee under § 34(5)
- APR on a 14-day $100 loan
- 391%
- Loans at one time
- A licensee may enter into 1 deferred presentment service transaction with a customer for any amount up to $600.00.
- Rollovers
- None.
- Repayment plan
- Yes.
- Governing law
- Mich. Comp. Laws §§ 487.2121 et seq.
Checked against Michigan law on November 10, 2026.
What a $300 payday loan costs in Michigan
- You borrow
- $300.00
- Fee
- $42.00
- You repay in 14 days
- $342.00
Based on Michigan's maximum fee, repaid in one payment. Your lender's price may differ.
The short version
- Payday loans are legal in Michigan and lenders must hold a state license.
- The most you can borrow on one loan is $600.
- The legal maximum on a $100, 14-day loan is $15, which is 391% APR.
- Michigan Department of Insurance and Financial Services handles licensing questions and complaints.
On this page
Are payday loans legal in Michigan?
Payday loans are legal in Michigan. A licensed lender may lend up to $600 and charge no more than 15% of first $100, 14% of second $100, 13% of third $100, 12% of fourth $100, 11% of fifth $100, 11% of sixth $100 +….
The governing law is Mich. Comp. Laws §§ 487.2121 et seq… Michigan Department of Insurance and Financial Services licenses lenders and takes complaints.
Loan limits in Michigan
- Loan size: up to $600
- Loan term: No more than 31 days
- Loans at one time: A licensee may enter into 1 deferred presentment service transaction with a customer for any amount up to $600.00.
- Rollovers: None.
- Repayment plan: Yes.
What a payday loan costs in Michigan
State law sets the price rule: 15% of first $100, 14% of second $100, 13% of third $100, 12% of fourth $100, 11% of fifth $100, 11% of sixth $100 + $1.35 database verification fee under § 34(5).
On a $100 loan repaid after 14 days, the most a lender may charge is $15. You would repay $115, an APR of 391%. For comparison, most credit cards charge between 20% and 30% APR.
Before you deal with an online lender
- Look the company up with Michigan Department of Insurance and Financial Services. No license, no loan.
- Never pay a fee up front to get a loan. That is the mark of an advance-fee scam.
- Read the agreement for the finance charge, the APR and the due date before you give out bank details.
If you cannot repay a loan in Michigan
Contact the lender before the due date and ask for a payment plan in writing. The state rule: Yes. On criminal threats: Prohibited. If a lender or collector breaks the rules, file a complaint with Michigan Department of Insurance and Financial Services and with the CFPB. Our guide to what happens if you don’t pay covers each step.
Lower-cost options in Michigan
- Credit union payday alternative loans (PALs): $200 to $2,000 at no more than 28% APR.
- A payment plan with the landlord, utility or hospital you owe often costs nothing.
- Local assistance: dial 211 for rent, utility and food programs near you.
See all payday loan alternatives or work out a loan’s price with the cost calculator.
Free help in Michigan
- 211Free, confidential referrals to local help with rent, utilities and food. Call 211.
- USA.gov: help paying billsGovernment programs for rent, energy, phone and medical bills.
- National Foundation for Credit CounselingNonprofit credit counselors who can set up a debt management plan. Call 800-388-2227.
- CFPB complaint portalFile a federal complaint about a lender or a debt collector.
Common questions
Are payday loans legal in Michigan?
Yes. Payday loans are legal in Michigan under Mich. Comp. Laws §§ 487.2121 et seq., and lenders need a state license.
How much can I borrow with a payday loan in Michigan?
Up to $600 on a single loan.
What does a payday loan cost in Michigan?
At the legal maximum, a $100 loan for 14 days costs $15. That equals an APR of 391%. A lender may charge less, so compare before you sign.
Can I roll over a payday loan in Michigan?
State rule on rollovers: None. A rollover adds a new fee without reducing what you owe.
Can I be arrested for not repaying a payday loan in Michigan?
No. Prohibited. A lender can still sue you in civil court, so never ignore a court summons.
Where do I complain about a lender in Michigan?
Contact Michigan Department of Insurance and Financial Services. You can also file a complaint with the Consumer Financial Protection Bureau.
Does Northlight lend money?
No. Northlight is an information site. We explain the rules and the costs; we do not make loans or credit decisions.
Sources
Keep reading
- MinnesotaMinnesota caps small loans at 50% APR, so high-cost payday loans are not offered. See what is allowed, what it costs and the alternatives.
- MassachusettsPayday loans are not legal in Massachusetts. Learn what the law says, why online offers are risky and which lower-cost options you can use instead.
- MississippiPayday loans are legal in Mississippi. A $100 two-week loan can cost up to $20 (521% APR). See the loan limits, the rules lenders must follow and where to compl
- MarylandPayday loans are not legal in Maryland. Learn what the law says, why online offers are risky and which lower-cost options you can use instead.
- MissouriPayday loans are legal in Missouri. A $100 two-week loan can cost up to $75 (1955% APR). See the loan limits, the rules lenders must follow and where to complai
- MainePayday loans are legal in Maine. A $100 two-week loan can cost up to $15 (391% APR). See the loan limits, the rules lenders must follow and where to complain.