What people use personal loans for
A personal loan is a lump sum repaid in fixed monthly payments, often for a larger cost such as a car repair, a move or medical bills; the examples below stay within Minnesota limits.
What personal loans can cost
These examples show how cost adds up. They are illustrative, not a quote. Your lender sets the actual rate and terms.
Representative example
- Amount borrowed
- $3,000
- Annual percentage rate (APR)
- 25.65%
- Repayment
- 12 monthly payments
- Payment
- $286.08
- Finance charge
- $432.96
- Total of payments
- $3,432.96
Example: a $3,000 installment loan at 25.65% APR repaid in 12 monthly payments of $286.08 costs $3,432.96 in total, including a finance charge of $432.96. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Representative example
- Amount borrowed
- $1,000
- Annual percentage rate (APR)
- 29.99%
- Repayment
- 12 monthly payments
- Payment
- $97.48
- Finance charge
- $169.76
- Total of payments
- $1,169.76
Example: a $1,000 installment loan at 29.99% APR repaid in 12 monthly payments of $97.48 costs $1,169.76 in total, including a finance charge of $169.76. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Representative example
- Amount borrowed
- $500
- Annual percentage rate (APR)
- 29.99%
- Repayment
- 12 monthly payments
- Payment
- $48.74
- Finance charge
- $84.88
- Total of payments
- $584.88
Example: a $500 installment loan at 29.99% APR repaid in 12 monthly payments of $48.74 costs $584.88 in total, including a finance charge of $84.88. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
What Minnesota law allows
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Installment and personal loans[1][2][3] | Allowed | 33% APR (top tier) | Not set by statute | Not set by statute | Regulated Loan license | Minn. Stat. Ch. 56, rates at 56.131 incorporating 47.59 subd. 3; Minn. Stat. 47.601; 47.603 |
| 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
Installment and personal loans
- Rate cap
- Regulated lenders (Minn. Stat. Ch. 56) charge rates under 47.59 via 56.131: the greater of 21.75% APR or 33% per year on the unpaid principal up to $1,425 plus 19% on the part above $1,425 (dollar tiers CPI-adjusted). Section 47.60 applies only to single-installment consumer small loans of $350 or less; section 47.601 caps consumer short-term loans ($1,300 or less with a payment over 25% of principal due within 60 days) at 50% all-in APR, with ability-to-repay rules above 36% (47.603).
- Fees
- Additional charges limited to those listed in 56.131 subd. 2 and 47.59 subd. 6 (official fees, permitted insurance, delinquency charge, one-time loan administrative fee). For consumer short-term loans under 47.601, all-in APR up to 50% and no other charges; above 36% requires ability-to-repay analysis under 47.603.
- License
- Regulated Loan license under Minn. Stat. Ch. 56 for general installment lenders, and/or registration as a 'consumer small loan lender' or 'consumer short-term lender' under Minn. Stat. 47.60, both administered by the Minnesota Department of Commerce; a 2026 amendment extended coverage of 47.60 to any entity that merely arranges such a loan.
Full detail for every loan type: Minnesota lending laws.
Help in Minnesota
Rent and jobs in Minnesota
Typical rent and the jobless rate, to weigh before a loan payment.
Other options in Minnesota
Cheaper options to try first
Worth checking whatever your credit: these can cost less than a high-rate loan.
- Credit union payday alternative loans (PALs), capped at 28% APR under NCUA rules (12 CFR 701.21).
- Nonprofit credit counseling through the National Foundation for Credit Counseling.
- A payment plan from the company you owe, if you ask before you miss a payment.
- 211 for help with rent, utilities and food: call 211 or visit 211.org.
More cheaper options in Minnesota.
Other loan types allowed in Minnesota
- Installment loans in Minnesota
- Emergency loans in Minnesota
- Title loans in Minnesota High-cost loan
- Payday loans in Minnesota High-cost loan
Personal loans in nearby states
- WisconsinAllowedNo rate limit in state law No rate limit
- IowaAllowed 36% APR (top tier)
- North DakotaAllowed 36% APR
- South DakotaAllowed 36% APR
- MichiganAllowedNo rate limit in state law No rate limit
Sources
- revisor.mn.gov. Minn. Stat. Ch. 56, rates at 56.131 incorporating 47.59 subd. 3. Retrieved September 23, 2026.
- madgettlaw.com/news/minnesota-consumer-small-loans-47-60. 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. 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.
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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.