Michigan Payday Loans

Mich. Comp. Laws §§ 487.2121 et seq.
Status: Legal

Payday loans are legal in the state of Michigan, pursuant to Mich. Comp. Laws ยงยง 487.2121 et seq. The number of companies offering payday loans in Michigan currently stands at 727.  The initial loan term stands at a maximum of 31 days and a maximum loan amount of up to $600.

Payday Loan Lending Laws in Michigan

The maximum amount of loan is $600 taken from a single lender, which means that while potential borrowers can take out more by going to a different lander, borrowers are not allowed to have more than two outstanding loans open at a time. Cash advance loans can be given for a period no longer than 31 days.  No extensions of time are allowed beyond that period. In the event a borrower cannot repay in time, and if they have taken out 8 outstanding loans over a 12-month period, an installment payback plan can and should be requested.

Lenders charge $15 for such services, and can legally charge a $25 insufficient funds fee in case of defaulted repayment and a service fee for each deferred presentment service transaction. The borrower will be solely responsible for the repayment and may be subject to collection actions from the lender, although a lender cannot threaten a delinquent borrower with jail time or other criminal charges.

Other Interest charges for short term loans in the state of Michigan work like this: 15% for the first $100, while the second $100 is granted at 14%, the third $100 at 13%, the fourth $100 at 12%.  All the loans over $400 are issued at 11%.  The stated APR for a $100 loan given for 2 weeks cannot exceed 390%.  A borrower can notify a lender with a letter if they feel the lender operating against the law, in which case a lender has three days for a decision. In case a lender admits the violation, they will pay a borrower five times the fee (minimum $15) associated with the loan.


To apply for a payday loan in Michigan, a potential borrower must meet these requirements:

  • Be at least 18 years old
  • Be employed for at least one month.
  • Have an active checking account
  • Be a U.S. citizen or permanent resident.

Lending Rules*

Lenders in the state of Michigan are legally required to comply by the following limitations according to Mich. Comp. Laws §§ 487.2121 et seq.:

Maximum Loan Amount:
Maximum Length of Loan:
31 days
Maximum Finance Rate & Fees:
15% of first $100, 14% of second $100, 13% of third $100, 12% of fourth $100, 11% of fifth $100, 11% of sixth $100 + any database verification fee
Finance Charge for 14-day $100 Loan:
APR for 14-day $100 Loan:
Max # Outstanding Loans at One Time:
One with licensee or more than one with any other licensee
Rollovers Permitted:
None (cannot renew; lender may extend only if it does not charge a fee)
Repayment Plan:
Collection Fees:
One $25 NSF fee
Criminal Action:
*The information displayed may not be current. For the most recent information, please visit http://www.paydayloaninfo.org/state-information/30.

Regulatory Information

If you have a complaint against a Michigan Cash Advance location you can contact your state regulator below:

Michigan Office of Financial and Insurance Regulation
P.O. Box 30220 Lansing MI 48909
(877) 999-6442
(517) 335-4978

Michigan Lenders

Below you can find Michigan payday loan lenders in the following cities:

Michigan Statistics**

The following information is key demographic data for the state of Michigan from the Census bureau.

Total Population:
Median Household Income:
Poverty Rate:
Median Gross Rent:
High School Graduate or Higher:
Bachelor's Degree or Higher:
**The information displayed may not be current. For the most recent information, please visit http://www.census.gov/quickfacts.

Borrow Safely, Borrow Responsibly

While payday loans can be an effective way to address short-term financial emergencies, the responsibility of understanding the loan terms and repaying the loan rests with the borrower.  Potential users should understand the loan terms including applicable fees and repayment schedules before applying.  Borrowers should also contact the Michigan Office of Financial and Insurance Regulation with any concerns or questions.

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