Payday Loans in Michigan

Yes, payday loans are legal in Michigan. You can borrow up to $600 for 7 to 31 days, and the fee falls with each $100 you add: at most $44.40 on $300, database fee included.

Michigan's Payday Fee From $100 to $600

Worked out from Michigan law, not offers from lenders in our network; a lender can charge less.

Each $100 has its own rate: 15% on the first, then 14%, 13% and 12%, and 11% on the fifth and sixth. Every amount includes the $2.40 database fee, which the lender may pass on to you. The fee is earned the day you borrow, so paying early doesn't cut it, and stretching $600 to the full 31 days still works out to about 154% APR.

Need more than $600, or monthly payments? Michigan installment loans from licensed lenders are capped at 25% a year.

Two Loans at Once, Tracked in a State Database

Michigan limits how many loans you carry, not just their size. You can have one payday loan with each lender and two open in total, and every lender checks the state database before it lends.

• Renewals are banned. A lender can move your due date only for free, and never past 31 days from the agreement date.
• In June 2026, DIFS said payday-style loans arranged through credit services organizations are prohibited.
• Repeat borrowing is common: from October 2024 to September 2025, 87.2% of borrowers took more than one loan, and 4,511 took 30 or more.

The Repayment Plan After Your 8th Loan

If you take 8 payday loans from any lenders within 12 months, you can turn the 8th, and each one after it, into a plan.

1. Ask the lender within 30 days after the loan's due date.
2. Repay in 3 equal installments on your next 3 paydays, even if that runs past 31 days.
3. Pay a plan fee of no more than $23.38 (2026 to 2030), and take no new payday loan from anyone until the plan ends.

DIFS counted 104,982 loans with a repayment plan in the year to September 2025.

Requesting a Payday Loan Under Michigan's Limits

1. Check where you stand: no open loan with this lender, no more than one elsewhere, and no repayment plan in progress.
2. Submit one request through LendUp. Lenders in our network review it, and any offer shows the APR, payments and total cost before you sign.
3. Read the agreement: the fee must appear in dollars and as an APR, with a due date no more than 31 days away.

Look Up the Lender's Deferred Presentment License

1. On the Consumer Finance tab, choose DP - Deferred Presentment as the industry type.
2. Search by company name, license number or NMLS ID, and check that the license is active.
3. Match the licensee's name and address to the website or store you're using.

Questions or complaints: DIFS at 877-999-6442, Monday to Friday, 8 a.m. to 5 p.m.

• A bounced check isn't a crime. Michigan rules out any criminal penalty when a payday check is returned. The lender can charge one returned-check fee per loan, up to $38.96.
• Restitution. A lender that breaks the law can be ordered to pay you 5 times the fee, at least $15.
• Fair arbitration. Any arbitration clause must make the lender pay the costs and hold the hearing within 10 miles of where you live.

Common Questions

Official Sources

← Michigan loan rules