Massachusetts Short-term Loan Terms and Rules in 2025

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Short-term Loans Terms in Massachusetts

Legal Status Illegal
Interest Rate (APR) 23% small loan cap

Top Personal Loan Lenders in Massachusetts

Lender
User Ratings
Branches
Cities
Category
Academy Mortgage Corporation
User Raiting:
5.00
Branches: 3
Cities: 3
Category: Financial institution
Finance of America Mortgage
User Raiting:
5.00
Branches: 4
Cities: 2
Category: Financial institution
Guaranteed Rate Affinity
User Raiting:
5.00
Branches: 10
Cities: 9
Category: Financial institution
Movement Mortgage
User Raiting:
4.99
Branches: 10
Cities: 7
Category: Financial institution
Envoy Mortgage
User Raiting:
4.98
Branches: 6
Cities: 6
Category: Financial institution
Draper and Kramer Mortgage Corp.
User Raiting:
4.92
Branches: 7
Cities: 7
Category: Financial institution
CrossCountry Mortgage (CCM)
User Raiting:
4.87
Branches: 23
Cities: 9
Category: Financial institution
Guaranteed Rate
User Raiting:
4.74
Branches: 59
Cities: 22
Category: Financial institution
Fairway
User Raiting:
4.71
Branches: 17
Cities: 10
Category: Financial institution
PNC
User Raiting:
4.65
Branches: 2
Cities: 2
Category: Bank
New American Funding
User Raiting:
4.50
Branches: 2
Cities: 1
Category: Financial institution
Guild Mortgage
User Raiting:
4.23
Branches: 36
Cities: 17
Category: Financial institution
NBT Bank
User Raiting:
4.20
Branches: 3
Cities: 2
Category: Bank
HarborOne Bank
User Raiting:
4.20
Branches: 11
Cities: 8
Category: Bank
Enterprise Bank
User Raiting:
4.15
Branches: 17
Cities: 15
Category: Bank
Cape Cod 5
User Raiting:
4.08
Branches: 14
Cities: 13
Category: Bank
Rockland Trust
User Raiting:
4.06
Branches: 83
Cities: 71
Category: Financial institution
Middlesex Savings Bank
User Raiting:
4.02
Branches: 17
Cities: 15
Category: Bank
Advance Financial
User Raiting:
4.00
Branches: 11
Cities: 9
Category: Bank
Homebridge
User Raiting:
4.00
Branches: 11
Cities: 7
Category: Financial institution
U.S. Bank
User Raiting:
4.00
Branches: 25
Cities: 10
Category: Financial institution
Eastern Bank
User Raiting:
3.99
Branches: 18
Cities: 17
Category: Bank
Express Loans Of America
User Raiting:
3.95
Branches: 2
Cities: 2
Category: Check cash
loanDepot
User Raiting:
3.90
Branches: 3
Cities: 3
Category: Financial institution
Brookline Bank
User Raiting:
3.89
Branches: 16
Cities: 13
Category: Bank
Webster First Federal Credit Union
User Raiting:
3.87
Branches: 8
Cities: 8
Category: Bank
BankFive
User Raiting:
3.76
Branches: 10
Cities: 6
Category: Bank
TD Bank
User Raiting:
3.73
Branches: 50
Cities: 44
Category: Financial institution
KeyBank
User Raiting:
3.62
Branches: 6
Cities: 5
Category: Bank
Webster Bank
User Raiting:
3.60
Branches: 4
Cities: 4
Category: Bank
JPMorgan Chase
User Raiting:
3.57
Branches: 13
Cities: 10
Category: Financial institution
Santander
User Raiting:
3.52
Branches: 55
Cities: 47
Category: Bank
Salem Five Bank
User Raiting:
3.51
Branches: 23
Cities: 20
Category: Bank
Metro Credit Union
User Raiting:
3.37
Branches: 10
Cities: 8
Category: Credit union
M&T Bank
User Raiting:
3.35
Branches: 44
Cities: 33
Category: Financial institution
Citizens Bank
User Raiting:
3.28
Branches: 144
Cities: 92
Category: Financial institution
Berkshire Bank
User Raiting:
3.24
Branches: 25
Cities: 18
Category: Bank
Flagstar
User Raiting:
3.00
Branches: 5
Cities: 4
Category: Bank
Bank of America
User Raiting:
2.78
Branches: 67
Cities: 55
Category: Financial institution
Stifel
User Raiting:
1.00
Branches: 4
Cities: 4
Category: Financial institution

Massachusetts Short-term Loan Regulations

In Massachusetts, payday loans are regulated under the Massachusetts Small Loan Act. This act, similar to Maryland's, is stringent and effectively limits the operation of traditional payday lending. The law caps the annual interest rate at 23% and administrative fees at $20 for loans under $6,000, making high-interest rate payday loans as commonly seen in other states unviable. As a result, traditional payday lending, characterized by short-term, high-interest loans, is largely non-existent in Massachusetts.

Additionally, payday lenders in Massachusetts must comply with federal regulations such as the Truth in Lending Act, which mandates that lenders disclose the cost of the loan in terms of the finance charge and the annual percentage rate (APR). The Fair Debt Collection Practices Act also applies, overseeing how debts are collected and prohibiting abusive, deceptive, and unfair collection practices. These federal laws, in conjunction with Massachusetts state regulations, provide robust protection for consumers against predatory lending practices.

What Are the Alternatives for Short-term Loans in Massachusetts?

When searching for alternatives to payday loans, residents have several options to consider. These include installment loans, which offer structured repayment plans, and personal loans, providing flexibility and potentially lower interest rates. Exploring these alternatives can help borrowers manage their finances more effectively and avoid the high costs associated with payday lending

Guaranteed Installment Loans

In Massachusetts, guaranteed installment loans provide a structured repayment plan, ideal for those needing predictable monthly payments. Unlike cash advances, these loans require a credit check and proof of income, offering longer terms and potentially lower interest rates. They are suitable for Massachusetts residents looking to manage larger expenses or consolidate debts more effectively.

Fast Title Loans

Fast title loans in Massachusetts offer immediate funding using a vehicle as collateral. Different from short-term loans, they require ownership of a car but can offer larger loan amounts based on the vehicle's value. This option is a quick solution for urgent cash needs without the stringent credit checks of traditional loans.

Emergency Loan without a Bank Account

For Massachusetts residents without traditional banking, an emergency loan without a bank account offers a crucial alternative. These loans differ from payday loans as they don't always require a checking account for approval, ideal for those facing unexpected expenses but lacking standard banking services.

Debt Consolidation Loan

A debt consolidation loan in Massachusetts is designed to combine multiple debts into a single loan. Unlike payday loans, it offers longer repayment terms and potentially lower interest rates, making it an excellent strategy for Massachusetts residents looking to streamline their finances and reduce overall debt costs.

Instant Personal Loans

Instant personal loans provide quick financial relief in Massachusetts, often with same-day approval. Unlike cash advances, they may require a credit check but offer more flexibility in loan amounts and repayment terms, making them an ideal solution for immediate personal financial needs.

Cash Loans with No Credit

In Massachusetts, cash loans with no credit cater to individuals without a strong credit history. Unlike short-term loans, these loans don't always require a credit check, making them accessible to a broader range of people in need of immediate cash but with limited credit options.

Bad Credit Loans

Bad credit loans in Massachusetts offer individuals with poor credit scores a chance to borrow, despite past financial challenges. Different from payday lending, these loans may have more favorable terms and focus on the borrower's ability to repay, providing a valuable opportunity for those aiming to rebuild their credit history.

Quick P2P Loans

Quick P2P (peer-to-peer) loans in Massachusetts connect borrowers directly with individual lenders, bypassing traditional financial institutions. These loans differ from cash advances by offering potentially lower interest rates and more flexible terms, appealing to those in Massachusetts seeking alternative lending options outside of conventional banking systems.

Basic Information about Massachusetts State

Metrics
Value
State Capital
Boston
Population
Approximately 7.0 million (as of 2021)
Location
Massachusetts is located in the New England region of the United States, known for its rich history, education, and innovation.
Largest City by Population
Boston
Biggest National Parks
Cape Cod National Seashore, Minute Man National Historical Park, Springfield Armory National Historic Site

Submit a Complaint Against a Lender in Massachusetts

If you need to submit a complaint against a payday lender in Massachusetts, the primary regulatory body is the Massachusetts Division of Banks. They ensure compliance with state laws governing payday loans. You can reach them at:

  • Massachusetts Division of Banks, 1000 Washington Street, 10th Floor, Boston, MA 02118-6400
  • (617) 956-1500
Submit a Complaint

FAQ

Are Payday Loans Legal in Massachusetts?

No, payday loans are not legal in Massachusetts. The state has stringent laws and regulations in place that prohibit payday lending to protect consumers from predatory practices and high interest rates. These regulations are designed to safeguard the financial well-being of Massachusetts residents.

Why are Payday Loans Prohibited?

Payday loans are prohibited in Massachusetts due to concerns about the harm they can cause to borrowers. The high-cost structure of payday loans can lead individuals into cycles of debt, making it challenging to achieve financial stability. The state government has implemented these laws to prevent payday lenders from exploiting vulnerable consumers.

What Alternatives Are Available for Short-Term Financial Needs?

Massachusetts offers various alternatives for individuals facing short-term financial needs. These alternatives prioritize responsible lending practices and borrower protection. Residents can explore traditional bank loans, credit unions, personal installment loans, and assistance programs provided by nonprofit organizations and government agencies.

Can Out-of-State Lenders Offer Payday Loans?

No, out-of-state payday lenders are not allowed to offer payday loans to residents in Massachusetts. The state's regulations extend beyond its borders to ensure that borrowers are protected from predatory lending practices, regardless of the lender's location.

What Should I Do If I Have an Existing Payday Loan in Massachusetts?

If you have an existing payday loan, it's important to know that it is not legally enforceable in Massachusetts. The state's laws render such loans void. If you're facing challenges related to an existing payday loan, you can seek guidance from the Massachusetts Division of Banks. They can provide assistance and resources to help resolve any issues associated with the loan.

Where Can I Report Unlawful Payday Lending Practices?

If you encounter any unlawful payday lending practices or believe you have been targeted by predatory lenders, it's essential to report these issues. You can report them to the Massachusetts Division of Banks. Your report can contribute to investigations and efforts to curb predatory lending practices in the state, protecting other consumers from similar experiences. Your actions can make a difference in promoting fair and responsible lending practices in Massachusetts.

Massachusetts Short-term Loans Near Me

Abington Acton Acushnet Adams Agawam Allston Amesbury Amherst Andover Arlington Ashburnham Ashfield Ashland Assonet Athol Attleboro Auburn Auburndale Avon Ayer Baldwinville Barnstable Barre Beach Bedford Belchertown Bellingham Belmont Berkley Berlin Beverly Billerica Blackstone Bolton Boston Bourne Boxborough Boxford Boylston Bradford Braintree Brant Rock Brewster Bridgewater Brighton Brimfield Brockton Brookfield Brookline Burlington Buzzards Bay Cambridge Canton Carlisle Carver Cataumet Centerville Charlestown Charlton Chatham Chelmsford Chelsea Chestnut Hill Chicopee Chilmark Clinton Cohasset Concord Dalton Danvers Dartmouth Dedham Dennis Dennis Port Devens Dighton Dorchester Dorchester Center Douglas Dracut Dudley Duxbury East Bridgewater East Brookfield East Dennis East Falmouth East Freetown East Longmeadow East Otis East Sandwich East Walpole East Wareham Easthampton Easton Edgartown Essex Everett Fairhaven Fall River Falmouth Feeding Hills Fiskdale Fitchburg Florence Foxborough Framingham Franklin Gardner Georgetown Gloucester Grafton Granby Great Barrington Greenfield Groton Groveland Hadley Halifax Hamilton Hampden Hanover Hanscom Afb Hanson Harwich Harwich Port Haverhill Hills Hingham Holbrook Holden Holliston Holyoke Hopedale Hopkinton Hubbardston Hudson Huntington Hyannis Hyde Park Indian Orchard Ipswich Jamaica Plain Kingston Lakeville Lancaster Lanesborough Lawrence Lee Leeds Leicester Lenox Leominster Lexington Lincoln Littleton Longmeadow Lowell Ludlow Lunenburg Lynn Lynnfield Malden Manchester by the sea Mansfield Marblehead Marion Marlborough Marshfield Marstons Mills Mashpee Mattapan Mattapoisett Maynard Medfield Medford Medway Melrose Mendon Merrimac Methuen Middleborough Middleton Milford Millbury Millis Milton Mission Hill Monson Montague Nahant Nantucket Natick Needham Needham Heights New Bedford New Braintree Newbury Newburyport Newton Newton Centre Newton Highlands Newton Lower Falls Newton Upper Falls Newtonville Nonantum Norfolk North Adams North Andover North Attleborough North Billerica North Brookfield North Chatham North Chelmsford North Dartmouth North Dighton North Eastham North Easton North Falmouth North Grafton North Reading North Truro North Waltham North Weymouth Northampton Northborough Northbridge Norton Norwell Norwood Oak Bluffs Orange Orleans Osterville Otis Oxford Palmer Paxton Peabody Pembroke Pepperell Pittsfield Plainville Plymouth Plympton Pocasset Princeton Provincetown Quincy Randolph Raynham Reading Rehoboth Revere Richmond River Rockland Rockport Roslindale Rowley Roxbury Russell Rutland Sagamore Beach Salem Salisbury Sandwich Saugus Scituate Seekonk Sharon Shelburne Falls Sherborn Shirley Shrewsbury Somerset Somerville South Dartmouth South Deerfield South Dennis South Easton South Egremont South Grafton South Hadley South Hamilton South Yarmouth Southampton Southborough Southbridge Southwick Spencer Springfield Sterling Stoneham Stoughton Stow Sturbridge Sudbury Sunderland Sutton Swampscott Swansea Taunton Teaticket Tewksbury Three Rivers Topsfield Townsend Truro Turners Falls Tyngsborough Upton Uxbridge Vineyard Haven Waban Wakefield Walpole Waltham Ware Wareham Watertown Wayland Webster Wellesley Wellesley Hills Wellfleet Wenham West Barnstable West Boylston West Bridgewater West Brookfield West Chatham West Dennis West Newbury West Newton West Roxbury West Springfield West Stockbridge West Tisbury West Wareham West Yarmouth Westborough Westfield Westford Westminster Weston Westport Westwood Weymouth Whately Whitinsville Whitman Wilbraham Williamsburg Williamstown Wilmington Winchendon Winchester Winthrop Woburn Woods Hole Worcester Wrentham Yarmouth Yarmouth Port