Yes. Payday loans are legal in Michigan, and lenders must follow MCL § 487.2153.
Payday loan rules in Michigan at a glance
| Payday loans | Legal, from licensed lenders |
|---|---|
| Fee or rate cap | Tiered service fee: 15% of the first $100 declining to 11% (~391% APR on a 14-day $100 loan, ~330% at $600) |
| Largest loan | $600 |
| Loan term | Up to 31 days |
| Rollovers and renewals | Not allowed |
| Extended payment plan | Required if you meet the conditions the law sets: a plan fee of up to $23.38 (MCL 487.2155(2)-(3); DIFS Bulletin 2026-07-CF). The conditions are listed below |
| State loan database | Yes, lenders must check it before lending |
| Right to cancel | Yes, you can cancel until the close of business on the next business day |
| Arrest and criminal charges | Lenders may not threaten arrest or jail to collect |
| Lender license | Required |
| Regulator | Department of Insurance and Financial Services |
| Statute | MCL § 487.2153 |
Source: MCL § 487.2153 (read the law). We last checked it against the statute on October 3, 2026. See payday loan laws in every state.
What a payday loan costs in Michigan
Under Michigan's limits, borrowing $100 for 14 days costs $15 in interest, so you repay $115. That is a 391.07% rate before fees: the law allows other charges on top, and the APR in the lender's disclosure must include them. Your offer may differ.
| Loan | Term | Interest | Total repaid | Rate before fees |
|---|---|---|---|---|
| $100 | 14 days | $15 | $115 | 391.07% |
| $300 | 14 days | $42 | $342 | 365% |
| $600 | 14 days | $76 | $676 | 330.24% |
A payday loan is usually repaid in one payment on your next payday, so a fee that looks small is a high APR. Compare it with the APR on any other option before you sign.
If you can't repay on time
Michigan doesn't let a lender roll a payday loan over into a new one for another fee. If you can't repay on time and you meet the conditions the law sets, the lender must offer an extended payment plan for a plan fee of up to $23.38. The conditions are listed below. Lenders may not threaten arrest or jail to collect a payday loan in Michigan.
The conditions on the payment plan in Michigan (MCL 487.2155(2)-(3); DIFS Bulletin 2026-07-CF):
- Eligibility: the drawer has entered into 8 deferred presentment service transactions with any licensee in any 12-month period (plan covers the 8th and each later transaction in that period).
- Request orally or in writing within 30 days after the maturity date.
- Written repayment plan agreement.
- Repay in 3 equal installments due on the next 3 regular income dates.
- Pay the repayment-plan administration fee ($15 base, CPI-adjusted; $23.38 for 2026-2030 per DIFS Bulletin 2026-07-CF).
- Agree not to enter into any additional deferred presentment transactions during the plan term.
A federal rule also protects your bank account: after two payment attempts in a row fail, the lender needs your new permission before it tries again (CFPB payday rule).
How to check a lender in Michigan
Payday lenders in Michigan need a state license. Look the lender up in the official license search before you sign. Complaints go to the Department of Insurance and Financial Services. Lenditup does not check lender licenses for you (see how we verify).
Looking for a loan in Michigan?
A payday loan is due in one payment within weeks. If you would rather spread the cost, compare a personal installment loan first. If a payday loan is still the right fit, you can send one request and see what lenders and lending marketplaces in our network offer.
Lenditup is not a lender. Sending a request does not mean you will be approved; each lender sets its own rates and terms within Michigan law.
Payday loan questions for Michigan
01What is the most a payday lender can charge in Michigan?
02How much can I borrow with a payday loan in Michigan?
03How long can a payday loan last in Michigan?
04Can I roll over a payday loan in Michigan?
05What if I can't repay a payday loan in Michigan on time?
06Can I cancel a payday loan in Michigan after I sign?
07How do I check that a payday lender is licensed in Michigan?
08Is Lenditup a payday lender in Michigan?
Other loan rules in Michigan
Car title loans have their own law: see title loan rules in Michigan. To compare payday rules across states, use the state payday loan law table, or read how payday loans work.