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Section
Payday Loans in Michigan
Payday Loan Laws in Michigan (2026)
Yes — payday loans are legal in Michigan, called “deferred presentment” transactions. You can borrow up to $600 per lender and hold two at a time (only one per lender), tracked by a statewide database. Fees are tiered by $100 increment, and after your 8th loan in a year a lender must offer a free installment repayment plan. DIFS oversees lenders.
| Status | Legal — licensed & regulated |
|---|---|
| Maximum loan | $600 per lender; up to 2 at a time (one per lender) |
| Maximum fee | Tiered: 15% of the 1st $100, then 14%, 13%, 12%, 11%, 11% (≈$76 on $600) |
| Database fee | $2.40 per transaction (as of Sept 1, 2025) |
| Typical APR | Often 300%+ on a two-week loan |
| Loan term | Up to 31 days |
| Rollovers | Prohibited |
| Repayment plan | Required after your 8th loan with a lender in 12 months (3 installments, $15 fee) |
| Statewide database | Yes — enforces the $600 / two-loan / one-per-lender limits |
| Regulator | Department of Insurance and Financial Services (DIFS) |
| Law | Deferred Presentment Service Transactions Act (MCL 487.2121+) |
What a payday loan costs in Michigan
Michigan's fee is tiered by $100: 15% on the first $100, then 14%, 13%, 12%, 11% and 11% — about $76 on a $600 loan. A $2.40 database fee is added per transaction. The effective APR on a two-week loan runs into the hundreds of percent.
| Amount borrowed | Service fee | Total repaid |
|---|---|---|
| $100 | $15 | $115 |
| $300 | $42 | $342 |
| $500 | $65 | $565 |
| $600 | $76 | $676 |
Your rights as a borrower in Michigan
- You can hold two payday loans at once, but only one per lender, each up to $600 — a statewide database enforces this in real time.
- Rollovers are banned, and the loan term can't exceed 31 days.
- Once you've taken 8 loans from a lender in a year, that lender must offer a free repayment plan — three equal installments for a one-time $15 fee.
- Fees are tiered, so a $600 loan costs about $76 plus a $2.40 database fee — read the schedule before signing.
Problem with a lender? File a complaint
Payday (deferred presentment) lenders in Michigan are licensed by DIFS. To report a violation or an illegal lender, use the online complaint form.
Alternatives to a payday loan
Before borrowing, compare a credit-union payday-alternative loan, an employer paycheck advance, or a payment plan with the biller. See our guide to payday loans and alternatives.
Your debt rights in Michigan
A lender can garnish wages in Michigan only after it sues and wins a court judgment, and federal law then caps how much can be taken. Michigan operates a real-time payday-loan database, so state limits on how many loans you can hold at once are enforced across all lenders. Your rights when you cannot repay are set by a mix of federal and state law — these guides explain how they work:
- Can a payday lender sue you?
- Can payday loans garnish your wages?
- Do payday loans affect your credit?
- Payday loan statute of limitations
- How many payday loans can you have?
- How to get out of payday loan debt
Disclaimer: general information, not legal or financial advice. Laws change — verify the current rules with the Michigan Department of Insurance and Financial Services (DIFS) before borrowing. Last reviewed 2026.
Sources
Frequently asked
Are payday loans legal in Michigan?
Yes. They are legal as “deferred presentment” transactions under the Deferred Presentment Service Transactions Act, overseen by DIFS.
How much can you borrow with a payday loan in Michigan?
Up to $600 per lender. You may have two loans at once, but only one with any single lender — a statewide database enforces this.
What is the most a Michigan payday lender can charge?
A tiered service fee — 15% of the first $100, declining to 11% — which is about $76 on a $600 loan, plus a $2.40 database fee.
Can I get a repayment plan for a payday loan in Michigan?
Yes. After your 8th loan with a lender in 12 months, that lender must offer a repayment plan of three equal installments for a one-time $15 fee.
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