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
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)
- 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.
The Northlight standard
- Highest APR
- 35.99%
- Time to repay
- 3 to 36 months
- Amounts
- $100 to $5,000
Example: $1,000 over 12 months at 35.99% APR is 12 payments of $100.46, $1,205.52 in total. Rates and terms
Key points
- Payday loans are legal in Michigan and lenders must hold a state license.
- The most you can borrow on one payday loan is $600.
- 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).
- 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. Check a lender’s license there before you share bank details; how to tell if a lender is legitimate lists the other checks.
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).
Federal law requires the lender to state the finance charge in dollars and the APR in your agreement. Read both before you sign, and set them beside the example further down this page.
A loan that meets the Northlight standard
Northlight works only with loans that carry an APR of 35.99% or less, fees included, and give you at least 3 months to repay. A single-payment payday loan under Michigan law does not meet that standard, whatever its fee, because it falls due in one payment within weeks.
For example, $1,000 repaid over 12 months at 35.99% APR is 12 payments of $100.46, or $1,205.52 in total. The calculator prices other amounts and terms.
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.
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?
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). The lender must give you the finance charge in dollars and the APR in writing 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 offer payday loans in Michigan?
No. Northlight is not a lender, and the loans we work with must carry an APR of 35.99% or less and run for at least 3 months. Single-payment payday loans do not meet that standard.
See the payment before you apply
Pick an amount and a term. The calculator shows the monthly payment, the total and the cost of credit at the highest APR we allow.
Sources
Keep reading
- MinnesotaMinnesota caps small loans at 50% APR, so high-cost payday loans are not offered. See what is allowed, who regulates lenders and what a loan costs.
- 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. See the loan limits, the rules lenders must follow, where to complain, and how a loan capped at 35.99% APR compares.
- 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. See the loan limits, the rules lenders must follow, where to complain, and how a loan capped at 35.99% APR compares.
- MainePayday loans are legal in Maine. See the loan limits, the rules lenders must follow, where to complain, and how a loan capped at 35.99% APR compares.