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Rates and rules

Michigan Loan Rates and Rules

Who regulates consumer lending in Michigan, how rates are set, and how to check a lender and its rate before you borrow. For new requests SET Financial is not the lender: it connects Michigan residents with third-party lenders who set all rates and terms.

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This page is general information, not a rate quote. Not everyone who applies will be matched or approved.

Who regulates consumer lending in Michigan

Consumer lending in Michigan is overseen by the Michigan Department of Insurance and Financial Services, whose Office of Consumer Finance licenses lenders. Licensed consumer lenders operate under statutes such as the Regulatory Loan Act (Act 21 of 1939), under which regulatory loan licensees may charge up to a 25 percent maximum APR, and the Credit Reform Act (Act 162 of 1995), under which regulated lenders may charge rates agreed upon in writing. Michigan's general usury limit is 7 percent when set by written agreement. SET Financial is only a connection service and does not lend, set rates, or set terms in Michigan. Your actual APR, fees, and repayment schedule are determined solely by the lender you are matched with, based on your application and that lender's own criteria.

Regulator: Michigan Department of Insurance and Financial Services (DIFS).

How to check a lender before you borrow

You can confirm a lender is licensed by checking with the Michigan Department of Insurance and Financial Services, and you should always review the exact APR, fees, and payment schedule shown on your loan agreement before you sign.

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 Michigan rates

Who regulates consumer loans in Michigan?

Consumer lending in Michigan is overseen by the Michigan Department of Insurance and Financial Services (DIFS), whose Office of Consumer Finance licenses lenders under laws such as the Regulatory Loan Act and the Credit Reform Act.

What interest rate can a Michigan lender charge?

It depends on the type of lender and loan. Regulatory loan licensees are limited to a 25 percent maximum APR, while regulated lenders under the Credit Reform Act may charge rates agreed to in writing. Your exact APR is set by your lender and shown on your loan agreement.

How do I verify my lender is licensed in Michigan?

You can check a lender's license status with the Michigan Department of Insurance and Financial Services, and you should review the APR, fees, and repayment terms on your loan agreement before signing.

This page is general information about Michigan 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 Michigan Department of Insurance and Financial Services (DIFS) 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.

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