Michigan has no law written for title loans. A loan secured by your car is treated as an ordinary licensed consumer loan, capped at 25% a year plus a processing fee (MCL 445.1854).
Title loan rules in Michigan at a glance
| Title-loan law | None. Car-secured loans follow the consumer-loan rules |
|---|---|
| Rate cap | A vehicle-secured loan from a licensed lender is capped at 25% a year plus a processing fee (MCL 445.1854) |
| Fees the law allows | Loan processing fee up to 5% of the principal, capped at $500 for loans made 1 January 2026 to 31 December 2027 (MCL 493.13(4); DIFS Bulletin 2026-05-CF) |
| Repossession | Allowed after default |
| Owe the balance after the car is sold? | Yes, the lender may collect what the sale did not cover. Check the statute for any minimum balance |
| Lender license | Required (Michigan Regulatory Loan Act licence (Department of Insurance and Financial Services)) |
| Statute | MCL 493.2, 493.13, 445.1854(1) |
Source: MCL 493.2, 493.13, 445.1854(1) (read the law). We last checked it against the statute on October 6, 2026. See title loan laws in every state.
What a title loan costs in Michigan
Under Michigan's rate rules, borrowing $1,000 for 12 months costs $140.53 in interest at the maximum rate, so you repay $1,140.53. That is a 25% rate before any fee: the fee the law allows is not in these examples, and the APR in the lender's disclosure must include it. Your offer may differ.
| Loan | Term | Interest | Total repaid | Rate before fee |
|---|---|---|---|---|
| $1,000 | 12 months | $140.53 | $1,140.53 | 25% |
| $2,500 | 12 months | $351.33 | $2,851.33 | 25% |
| $5,000 | 12 months | $702.65 | $5,702.65 | 25% |
Michigan also lets lenders charge a fee on top of the interest: Loan processing fee up to 5% of the principal, capped at $500 for loans made 1 January 2026 to 31 December 2027 (MCL 493.13(4); DIFS Bulletin 2026-05-CF). A fee like this raises the APR, so compare the APR in the lender's written disclosure, which must include it.
What happens if you can't repay
If you fall behind, the lender can repossess your car. Read the default and notice terms in your contract before you sign. If the car is sold for less than you owe, the lender may be able to collect the difference. Some states allow this only when the unpaid balance is above a set amount, so check the statute or ask the lender.
If you think you will miss a payment, call the lender before the due date and ask what options it offers.
How to check a lender in Michigan
Title lenders in Michigan must be licensed (Michigan Regulatory Loan Act licence (Department of Insurance and Financial Services)). Search for the lender on the official license lookup before you sign. Complaints go to the Michigan Department of Insurance and Financial Services (DIFS). Lenditup does not check lender licenses for you (see how we verify).
Looking for a loan in Michigan?
Because Michigan prices car-secured loans like other consumer loans, fewer lenders offer them. You can still send a title loan request, or compare a personal installment loan, which doesn't put your car at risk.
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.
Title loan questions for Michigan
01What is the most a title lender can charge in Michigan?
02What happens if I can't repay a title loan in Michigan?
03How do I check that a title lender is licensed in Michigan?
04Is Lenditup a title lender in Michigan?
Title loan laws in other states
- Alabama
- Alaska
- Arizona
- California
- Colorado
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Mexico
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Compare every state side by side on the state title loan law table, or read how title loans work and what lenders ask for. Payday loans follow a different law: see payday loan rules in Michigan.