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What Minnesota law allows
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Payday loans[1][2][3][4][5] | Allowed | 50% APR | Up to $350 | Up to 30 days | Consumer small loan lender filing/registration with the Minnesota Commissioner of... | Minn. Stat. 47.60, as amended 2023 and again reaching loan arrangers effective Aug. 1, 2026 |
| Verified against the statute and regulator on September 23, 2026. Laws change; confirm with the regulator before you borrow. | ||||||
Bars place each APR cap on a 0 to 400% scale; the pin marks the cap. A striped bar means the statute sets no numeric cap.
The rules in full
Payday loans
- Rate cap
- Consumer small loans (single-installment, cash advance of $350 or less) may carry an all-in APR of up to 50% (47.60 subd. 2(a)); a loan above 36% APR must comply with the ability-to-repay rules of 47.603. Term no more than 30 days; loan may not be repaid with proceeds of another loan from the same lender; aggregate principal outstanding capped at $350.
- Fees
- All-in APR (all interest, finance charges, and fees) up to 50%; no other charges except a statutory return-check charge; after maturity, up to 2.75% per month on remaining proceeds.
- License
- Consumer small loan lender filing/registration with the Minnesota Commissioner of Commerce under 47.60 subd. 3 (also covers internet lenders without a Minnesota location); consumer short-term lenders (including arrangers and lead generators) under 47.601.
Full detail for every loan type: Minnesota lending laws.
Help in Minnesota
Money snapshot for Minnesota
Other options in Minnesota
Worth checking whatever your credit: these can cost less than a high-rate loan.
- Emergency loans in Minnesota: allowed under Minnesota law; see its limits and license rules.
- Installment loans in Minnesota: allowed under Minnesota law; see its limits and license rules.
- Personal loans in Minnesota: allowed under Minnesota law; see its limits and license rules.
- Title loans in Minnesota: allowed under Minnesota law; see its limits and license rules.
- Credit union payday alternative loans (PALs). Federal credit unions may offer small loans of up to $2,000 with terms of up to 12 months and an APR no higher than 28%, under NCUA rules (12 CFR 701.21). You usually need to be a member.
- Nonprofit credit counseling. A counselor accredited by the National Foundation for Credit Counseling can help you build a budget or a debt management plan.
- Ask your creditor for a payment plan. Utilities, hospitals and many lenders offer hardship or extended payment plans if you ask before you miss a payment.
- Local assistance. Call 211, or visit 211.org, for emergency help with rent, utilities and food in Minnesota.
Payday loans in nearby states
- WisconsinAllowed No numeric cap
- IowaAllowed Fee cap
- North DakotaAllowed Fee cap
- South DakotaAllowed 36% APR
- MichiganAllowed Tiered cap
Sources
- responsiblelending.org/media/minnesota-governor-signs-popular-interest-rate-cap-payday-loans. Retrieved September 23, 2026.
- americanbanker.com/news/minnesota-caps-rates-on-payday-loans-with-a-wrinkle. Retrieved September 23, 2026.
- revisor.mn.gov. Minn. Stat. Ch. 56, rates at 56.131 incorporating 47.59 subd. 3. Retrieved September 23, 2026.
- senatedfl.mn/new-law-to-protect-minnesotans-from-predatory-payday-lending-practices-goes-into-effect. Retrieved September 23, 2026.
- mn.gov. Minnesota Department of Commerce. Retrieved September 23, 2026.
- National Low Income Housing Coalition. Out of Reach 2026: Minnesota. Retrieved September 23, 2026.
- U.S. Census Bureau, Population Division. Vintage 2024 National and State Population Estimates. Retrieved September 23, 2026.
- U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.
Important disclosures
APRs vary by lender and state in Minnesota. Each lender sets its own rates and terms and must show you the APR before you sign.
Representative example
- Amount borrowed
- $350
- Annual percentage rate (APR)
- 50%
- Repayment
- 1 payment after 30 days
- Payment
- $364.38
- Finance charge
- $14.38
- Total of payments
- $364.38
Example: a $350 payday loan at 50% APR repaid in 1 payment after 30 days costs $364.38, including a finance charge of $14.38. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
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- Questions about a lender licensed in Minnesota? Contact the Minnesota Department of Commerce or file a state complaint.
- You can submit a complaint about any lender to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.