Massachusetts Loan Rates and Rules

Who regulates consumer lending in Massachusetts

In Massachusetts, consumer lenders are licensed and supervised by the Division of Banks, not by SET Financial. Under Chapter 140, Section 96, anyone in the business of making loans of $6,000 or less at a rate above 12 percent per year must hold a small loan company license from the Commissioner of Banks. Licensed small loan companies are capped at an annual percentage rate of 23 percent plus an administrative fee of up to $20 on those loans. All rates, fees, and terms are set solely by the lender you are matched with, within the limits of Massachusetts and federal law. SET Financial does not lend, is not a licensed lender in Massachusetts, and does not set or control any rate or term.

Regulator: Massachusetts Division of Banks (the Commissioner of Banks administers the small loan provisions of Massachusetts General Laws Chapter 140, Sections 96 through 114A).

How to check a lender before you borrow

Before you accept any offer, confirm the lender is licensed to lend in Massachusetts (you can check the Division of Banks licensee lookup) and read the full APR, fees, payment schedule, and total cost printed on your loan agreement.

Many consumer lenders are also listed on NMLS Consumer Access, a national database you can search for free to confirm a company's license status and history.

Search NMLS Consumer Access

The four numbers to compare on any offer

A regulator's rules tell you about the lender. These tell you about the loan. Whoever you borrow from, and whether or not you use this site, compare offers on the same four things:

• APR. The annualized cost including most fees. It is the only number that lets you compare two different loans honestly.
• Total repayment amount. Principal plus every finance charge over the full term. A lower monthly payment stretched longer often costs more overall.
• Term and payment schedule. How many payments, how often, and the exact due dates measured against when you actually get paid.
• Fees and prepayment terms. Origination, late, and returned-payment fees, and whether paying the loan off early saves you interest.

Your loan agreement is the number that governs

Federal Truth in Lending rules require the lender to disclose the APR, finance charge, amount financed, and total of payments on the loan agreement before you sign. Any rate you see in marketing, including on this site, is general information. The figures on your own signed agreement are what actually apply to your loan.

Common questions about Massachusetts rates

This page is general information about Massachusetts lending rules, not legal or financial advice, and it is not a rate quote. Rules change; confirm anything that matters to your situation with the Massachusetts Division of Banks (the Commissioner of Banks administers the small loan provisions of Massachusetts General Laws Chapter 140, Sections 96 through 114A) or a qualified advisor. SET Financial is not the lender on new requests and does not set the rates, fees, terms, or approval decisions of the third-party lenders in its network.

Keep reading

• Personal loans in Massachusetts covers how requests are matched and who the network works with.
• All states we serve.