Massachusetts Interest Rate Limits for Family & Private Loans (2026)
Lending to someone you know in Massachusetts? Review the information below and keep the loan terms clear for both of you.
Massachusetts interest-rate information
Interest rate limits for a private loan in Massachusetts
| Bound | Rate | What it means |
|---|---|---|
| Minimum (IRS applicable federal rate) | 4.35% | Mid-term AFR for August 2026. Charge less and the shortfall is treated as imputed interest — a federal tax question, not a state one. Short and long-term loans use different AFR bands. |
| Maximum (Massachusetts usury limit) | No general cap | Massachusetts sets no general statutory maximum for a written loan between private individuals; the rate can be fixed by written agreement. Specific loan types and licensed lenders are treated separately. |
State limit reviewed 2026-09.
Interest-rate (usury) limits shown by Chipkie are general guidance only, compiled from public summaries and not legal advice. Caps vary by loan type, amount and lender, and states change them — please verify your state's current limit yourself before relying on it.
Read the details before agreeing
Use the information and accompanying notes in the tool as a starting point. Check the source dates and qualifications, and get advice on your own circumstances when needed.
Start with a clear conversation
Talk through what each person is comfortable with. Write down the loan amount, repayment schedule and agreed terms, so you both know what to expect.
Discuss what you will do if circumstances change. A clear plan gives you a shared starting point for the conversation.
Keep your loan plans together
Plan your repayments · Browse all loan tools · Browse state information · Explore AFR information · Compare family and bank loans
This tool provides general information, not legal, tax or financial advice. For guidance on your own circumstances, speak with a qualified professional.