Payday Loans in Massachusetts

Payday Loans in Massachusetts

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Payday loans are the best solution when your income can not cover your cash emergency. Life is never steady, and you could be in a financial gridlock where you need cash out of the blue. Even if you have an income source, it is tough to handle monetary issues during a crisis. When you need money quickly, it is stressful to turn to the bank because their lending system is tasking. That’s why payday loans are essential. In MA, you can get a maximum of $1,000 in payday advance to handle your monetary difficulties.

Some of the Loan Packages Massachusetts Lenders Offer

  1. Payday loans

Payday loans are advances promised against your next paycheck. They are a brief inflow of money that are essential when you are faced with an abrupt and unforeseen expenditure, like hospital bills. One of the perks of payday loans is that, unlike other traditional loans, it is easy to apply for, and the transaction is faster.

Usually, payday loans are characterized by high-interest rates. This is why the state of Massachusetts has made an effort to combat the exorbitant fees by ensuring lenders do not go past 23% in APR and $20 in extra fees. 

Law Status They are permitted but under strict state laws.
Minimum Loan Amount $100
Maximum Loan Amount $1,000
Minimum Loan Term 14 days (2 weeks)
Maximum Loan Term 31 days
Maximum Annual Percentage Rates (APR)% 23%
Additional Fees $20 administrative fee
Collateral or guarantor  None
Non-Sufficient Fund (NSF) Fees None
Number of Simultaneous Loans Not set
Cooling-off Period None
Rollover  Not allowed
Extension, repayment plan Not permitted 
Default Penalties Criminal actions are banned  
Credit Score Requirements Accessible for bad credit 
  1. Installment loans

Installment loans are longer-term loans with a monthly repayment plan. You can take out up to $5,000 in installment loans. The lender will outline the repayment plan. Usually, installment loans have a fixed interest rate, meaning you get to pay a specific amount monthly. The interest rate is dependent on the lender, so ensure you do proper research before taking out this loan.

This loan type is perfect for large expenses, huge medical bills, car repair, or personal use as the lender doesn’t scrutinize what you use the money for. Like payday loans, the process of getting an installment loan isn’t stressful. 

Law status Authorized
Minimum Loan Amount $1, 000
Maximum Loan Amount $5, 000
Minimum Loan Term 90 days 
Maximum Loan Term 36 months (three years)
Annual Percentage Rates (APR%)(Minimum) 6.63%
Collateral or Guarantor None
Credit Score Requirements Unrestricted for low credit score.
  1. Personal loans

A personal loan is a loan you obtain from authorized lenders or financial organizations like banks and credit unions. Personal loans are usually unsecured, meaning you don’t have to submit collateral. Although this is good news, it also means that not repaying your loan on time could harm your credit score. 

While taking out personal loans, watch out for unnecessary additional fees and high-interest rates. Most dishonest lenders might sneak in these fees in your contract, so ensure you read the agreement thoroughly before signing. 

Law status Approved
Loan Amount (Minimum) $1,000
Loan Amount (Maximum) $35,000
Minimum Loan term  90 days
Maximum Loan term  60 months/5 years
Minimum Annual Percentage Rates (APR%) 4.99%
Collateral or Guarantor None
Credit Score Requirements Your credit score doesn’t matter

Are Payday Loans Legal in Massachusetts? 

Payday loans are allowed in Massachusetts. However, they are under stringent state laws to regulate the outrageous fee some lenders charge.

In MA, a lender must obey the Massachusetts Small Loan Law and can not charge any extra fee above $20, and the Annual Percentage Rate (APR%) must not exceed 23%. Also, local banks are not allowed to operate with lenders outside of MA to protect the interest of residents and prevent issues with unethical lenders. 

To avoid falling victim to dubious lenders, confirm that the lender is licensed under the Massachusetts Division of Banks

Massachusetts state laws declare that lenders who wish to operate in the state must be certified and comply with the small loan act. Employers are not left out of Massachusetts’s strict state laws. In MA, employers are compelled to pay their workers weekly or biweekly so that they never go a long period without cash. 

Other Available Alternatives to Payday Loans in Massachusetts 

There are other alternatives to payday loans in MA.

  1. Short-term loans from banks or credit unions. 

You can ask for a short term loan from your bank or a credit union (if you are a member) 

The difference between a credit union and a bank is that the former is nonprofit and has members. However, both are financial institutions that collect low interest on the loans you obtain, and you can pay back in installments rather than giving up your paycheck.

  1. Paycheck advance from employers.

When you are confronted with a financial emergency, you can ask your employer to give you an advance from your paycheck and make the necessary deduction from future wages.  

All you have to do is submit a written request, reach an agreement with your employer and sign in approval. However, please do not turn this into a routine as it can strain your work relationship. 

  1. Installment payment of unforeseen bills

Depending on what the bill is covering and how lenient the collector is, when you are faced with an unexpected bill, consider reaching an agreement to pay that bill in installments instead of taking out a payday loan. 

  1. Title loans 

Title loans are a secured financing scheme as you will be required to use your car as collateral. You must provide a clear car title, and even though you would be allowed your car while you repay the loan, the lender will put a lien on it. This lien will be removed once you have repaid your loan.  Also, the amount you can obtain is equivalent to the quality of your vehicle. 

How to get a payday loan in Massachusetts? 

Obtaining a payday loan in MA is easy. All you have to do is: 

  • Visit a trusted website like ours. All our lenders are licensed by the Massachusetts Division of Banks (DOB). 
  • Read the requirements and confirm you meet them all. 
  • Begin your loan application journey by filling out the form. 
  • Submit and wait for your loan approval. 
  • Once your loan has been approved, you will receive a loan agreement to sign. You can refuse the loan at this point. If you still want the loan, sign the contract, and your desired loan will be sent to your account. 

What do you need to obtain a payday loan online in Massachusetts? 

If you want to get a payday loan in MA, you must: 

  1. Be at least 18 years of age
  2. Legally resident in MA.
  3. Own a government-issued ID and an active checking account
  4. Have a steady income and make at least $1,000 monthly. 
  5. Provide a verified email, telephone number, and Social Security Number (SSN)

Massachusetts Payday Loan Fee Example

When you obtain a $300 payday loan with a minimum of 14 days in Massachusetts, you will have an interest rate of

Annual Percentage Rate (APR%): 23%

Loan procured: $300

Finance charge (for 14 days):$20 * 3= $60

To return: $360

APR% Calculation= $60/$300= 0.2* 365 days= 73/14= 5.124

= 512.4% 


Are payday loans available in Massachusetts?

Yes, payday loans are available in Massachusetts, but very strict state laws guide them.

What are 3 alternatives to getting a payday loan?

You can get personal loans, short-term loans from banks, or installment or title loans.

Can you have 2 payday loans at once?

No, you can not take out two payday loans at a time in MA.

Find the nearest city in MA to get a payday loan