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Minnesota bad credit loans, loan laws and local help

The rules lenders follow in Minnesota, what a loan can cost and where to find free help. Checked against state sources on September 23, 2026.

Minnesota at a glance

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BadCreditMD is not a lender or broker. A lending network partner shares requests with lenders, who set their own rates and decide whether to lend. There is no fee to use our service. See disclosures.

Last updated .

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What a loan can cost in Minnesota

Examples at an illustrative rate, never above Minnesota's cap for the amount. They are not quotes.

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.

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
$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.

Resources in Minnesota

Free and low-cost help in Minnesota, each with its official link and the date we checked it.

  • Lending regulator and complaints

    Minnesota Department of Commerce licenses lenders in Minnesota.

    Check a lender's license File a complaint

    mn.gov Checked September 23, 2026

  • Attorney general consumer protection

    Takes complaints about scams and unfair debt collection.

    Contact consumer protection

    ag.state.mn.us Checked September 23, 2026

  • 211

    Help with rent, utilities, food and other urgent bills.

    Find your local 211

    211unitedway.org Checked September 23, 2026

  • Legal aid

    Free civil legal help if your income is low; income limits vary.

    Find legal aid

    mnlegalservices.org Checked September 23, 2026

  • Nonprofit credit counseling

    Help with a budget or a debt management plan.

    Find a nonprofit counselor

    nfcc.org Checked September 23, 2026

  • Federal complaints

    Complaints about any lender, to the Consumer Financial Protection Bureau.

    Submit a complaint to the CFPB

    consumerfinance.gov Checked September 23, 2026 Available in Spanish

More Minnesota resources appear here as we check each source.

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). 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.
  • 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.
  • Credit-builder loans: a small loan held in savings while you pay it off, which can help build a payment history.
  • Secured credit cards: a card backed by a deposit you make, which can help build credit when you pay on time.

The rules lenders follow in Minnesota

Each rule links to its source. How we research state rules.

Allowed in Minnesota: installment and personal loans, title loans and payday loans.

Lending law in Minnesota
ProductStatusAPR capAmountTermLicenseLaw
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
Title loans[4][5] AllowedHigh-cost loan 36% APR Not set by statute Not set by statute None listed Statute
Payday loans[6][7][1][8][3] AllowedHigh-cost loan 50% APR Up to $350 Up to 30 days Consumer small loan lender filing/registration 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.

Rate, fee and license rules in Minnesota

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.

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.

Rent and jobs in Minnesota

Typical rent and the jobless rate, to weigh before a loan payment.

Rent and unemployment in Minnesota
MeasureValueYear
Fair market rent, 2 bedroom (monthly)[9]$1,504FY2026
Unemployment rate[10]4.4%2026-08

Guides for Minnesota borrowers

By credit score

By amount

Articles about Minnesota

Check your options in Minnesota

Check your optionsYour request goes to a lending network partner, who shares it with lenders. Lenders set their own rates and decide whether to lend. There is no fee to use our service.

Minnesota questions

Does Minnesota law allow payday loans?

Minnesota law allows payday loans. The cost limit is 50% APR. Source: Minn. Stat. 47.60, as amended 2023 and again reaching loan arrangers effective Aug. 1, 2026.

What is the most a lender can charge in Minnesota?

By loan type in Minnesota: Installment and personal loans: 33% APR (top tier). Title loans: 36% APR. Payday loans: 50% APR.

Where can I file a complaint about a lender in Minnesota?

You can file a complaint with Minnesota Department of Commerce, and you can also submit one to the Consumer Financial Protection Bureau. Both links are under Resources in Minnesota on this page.

How do I check a lender's license in Minnesota?

Minnesota Department of Commerce licenses lenders in Minnesota. Use the license link under Resources in Minnesota on this page to check a lender before you share your information.

Is there free help paying bills in Minnesota?

Yes. Resources in Minnesota on this page lists free help, including 211, legal aid and nonprofit credit counseling.

Nearby states

Sources

  1. revisor.mn.gov. Minn. Stat. Ch. 56, rates at 56.131 incorporating 47.59 subd. 3. Retrieved September 23, 2026.
  2. madgettlaw.com/news/minnesota-consumer-small-loans-47-60. Retrieved September 23, 2026.
  3. mn.gov. Minnesota Department of Commerce. Retrieved September 23, 2026.
  4. mn.gov. Minnesota Department of Commerce. Retrieved September 23, 2026.
  5. responsiblelending.org/media/new-research-brief-provides-fresh-evidence-car-title-lenders-operating-illegally-22-states. Retrieved September 23, 2026.
  6. responsiblelending.org/media/minnesota-governor-signs-popular-interest-rate-cap-payday-loans. Retrieved September 23, 2026.
  7. americanbanker.com/news/minnesota-caps-rates-on-payday-loans-with-a-wrinkle. Retrieved September 23, 2026.
  8. senatedfl.mn/new-law-to-protect-minnesotans-from-predatory-payday-lending-practices-goes-into-effect. Retrieved September 23, 2026.
  9. National Low Income Housing Coalition. Out of Reach 2026: Minnesota. Retrieved September 23, 2026.
  10. 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.

  • BadCreditMD is not a lender or broker and does not make loans or credit decisions. When you submit a request, a lending network partner shares it with third-party lenders, and those lenders or the partner may pay us a fee for each referral. The lenders decide whether to offer you a loan.
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  • Short-term loans are costly and are not a long-term financial solution. Borrow only what you can repay on time.
  • BadCreditMD publishes general information about loans and state rules. It is not legal or financial advice.
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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.