Payday loans in Michigan
In Michigan, payday loans are legal when DIFS-licensed lenders offer deferred presentment service transactions, and the Deferred Presentment Service Transactions Act is the governing law.
- Payday lending
- Allowed
- Max cost
- $15.00 per $100 borrowed
- Top amount
- Each transaction allows a maximum of $600.
At that cap, a $100 loan over 14 days can carry $15.00 in fees: $115.00 back in total, close to 391% APR.
Are payday loans legal in Michigan?
Yes, the Michigan Deferred Presentment Service Transactions Act makes payday loans legal in Michigan. Licensed lenders may provide up to $600 for terms ranging from seven to 31 days. On the first $100, the service fee is 15 percent, and it falls to 11 percent on the fifth $100 and the sixth. On a $600 loan, fees reach no more than $76, with an added $2.40 charge to search the Veritec statewide database. You can have one active loan with each lender, but no more than two loans overall.
Renewing loans is prohibited by Michigan law. Your lender may extend your agreement only if no fee is charged for doing so. State law allows you to request an installment plan after eight loans from any licensed lender within 12 months. If you cannot pay, ask for this plan; the balance is then repaid in three equal parts on your next three paydays. Contact the Michigan Department of Insurance and Financial Services if a lender breaks these rules; they license providers, give consumer information, and investigate complaints.
- With a sliding fee scale, Michigan charges 15% on the first $100 and 11% on the fifth and sixth $100, capping the cost of a $600 loan at $76 plus the database fee.
- All licensed loans require checking in the Veritec statewide real-time database, while the verification fee is set at $2.40 from September 1, 2025.
- You may hold one open loan with a specific lender and up to two open loans altogether.
- A 3-payment installment plan may be requested by a borrower who cannot pay after taking 8 loans from any lender within 12 months.
- Renewals are banned; a lender may offer an extension only when the extension carries no fee.
- Sierra Financial, a lender connected to the Iipay Nation of Santa Ysabel, faced the Attorney General's case in 2020, Michigan's first suit under the Consumer Financial Protection Act, a federal law.
Michigan payday loan laws
- Law in force
- Michigan Deferred Presentment Service Transactions Act (2005 PA 244)
- Cited as
- Mich. Comp. Laws 487.2121 through 487.2173 (fee and amount: 487.2153)
- Fees under the law
- Fifteen percent applies to the first $100.00, fourteen percent to the second $100.00, thirteen percent to the third $100.00, twelve percent to the fourth $100.00, and eleven percent to the fifth and sixth $100.00, with any database verification fee added.
- Most you can borrow
- Each transaction allows a maximum of $600.
- How long a loan runs
- 7 days (DIFS FAQ) to 31 days
- Rollovers
- Forbidden: a licensee shall not renew an agreement; extending it requires that no fee be charged.
- Loans you can hold at once
- You may have one open transaction with each licensee, but no more than two open transactions in total.
- Repayment plan
- If you have taken out 8 loans from any licensed lender in a 12-month period, you may request to pay the balance back in 3 equal parts on your next 3 paydays.
- Installment lending limits
- For regulatory loan licensees, the rate is 25% per annum. A processing fee equal to 5% of the amount borrowed applies, up to $500 (MCL 445.1854, 445.1856 and 493.13, from the DIFS table of interest rate ceilings).
Also checked against michigan.gov. Full statute text.
Online lenders that list Michigan
Ten companies we track say they lend in Michigan: 3 online installment lenders, 6 tribal lenders and 1 loan broker.
| Lender | Kind | Posted APR |
|---|---|---|
 NetCredit | Installment | 34.99% to 99.99% |
 OppLoans | Installment | 99% to 195% |
 Rise Credit | Installment | 60% to 299% |
 Viva Payday Loans | Broker | Partner lenders quote 4.99% to 1,386% |
Tribal loans in Michigan
In 2019, Michigan's Attorney General took legal action against Sierra Financial, an online tribal lender. The result in 2020 was a halt to new loans for Michigan consumers and collection limited to principal on existing loans.
On the immunity claim tribal lenders make, see are tribal loans legal.
Six tribal lenders we track list Michigan as a state they lend in. Three of the six publish an APR, from 73.7% to 725%.
| Lender | Posted APR |
|---|---|
 Mobiloans | 73.7% to 405% |
 Spotloan | 99% to 490% |
 BrightLending | 325% to 725% |
 MaxLend | Not published |
 Minto Money | Not published |
| American Web Loan | Not published |
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Michigan and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| Michigan | Allowed | $15.00 per $100 borrowed | Each transaction allows a maximum of $600. |
| Indiana | Allowed | $15.00 per $100 borrowed | The statute sets $550 as the base, which the DFI rule lifts to $825, with a rise to $880 from January 1, 2027. |
| Ohio | Only as installments | None in the law | Each loan is limited to $1,000, and the total outstanding short-term principal for one borrower cannot exceed $2,500. |
| Wisconsin | Allowed | None in the law | interest and fees count toward the combined total due to all payday licensees, capped at whichever is smaller: 35% of gross monthly income or $1,500 |
Michigan loans with no credit check
Installment loan rates: For regulatory loan licensees, the rate is 25% per annum. A processing fee equal to 5% of the amount borrowed applies, up to $500 (MCL 445.1854, 445.1856 and 493.13, from the DIFS table of interest rate ceilings).
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in Michigan
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the Michigan Department of Insurance and Financial Services (DIFS).
- Had trouble with a lender? Report the lender.
Sources for Michigan
- One deferred presentment transaction per customer is permitted for a licensee, with a limit of up to $600.; 15% is the starting service fee on the first $100.; On the sixth $100, the rate falls to 11%.legislature.mi.gov
- According to DIFS, the highest fee for a $600 loan is $76.; DIFS states the minimum term is 7 days and the maximum term is 31 days.; You may keep two transactions open in total, yet only one per licensed location.michigan.gov
- Real-time online access to a shared statewide database is required by the Act.; The law prohibits renewing any loan.; Lenders may grant an extension only when they charge no fee for it.legislature.mi.gov
- A limit of 25% per annum applies to Regulatory loan licensees.michigan.gov
- Michigan secured an assurance of voluntary compliance in 2020 from Sierra Financial, an online tribal lender.; For existing loans, Sierra Financial must collect principal only; it must also end further loans for Michigan consumers.; Laws of the Iipay Nation of Santa Ysabel governed the incorporation of Sierra Financial.michigan.gov
- Under Act 244 of 2005, DIFS grants licenses to deferred presentment providers.michigan.gov
- Consumer financial product complaints are investigated by DIFS.michigan.gov