State guide

Minnesota bad credit loans, loan laws and local help

Loan options, state rules and local help for Minnesota residents with bad credit: which loan types Minnesota law allows, what a typical loan can cost, and who to call when money is tight. Checked against state sources on September 23, 2026.

BadCreditMD is not a lender or broker. We explain your options; a lending network partner shares requests with lenders, who set their own rates and decide whether to lend. See disclosures.

Minnesota at a glance

Loan options in Minnesota

Every loan type we cover is listed, including the ones Minnesota law does not allow, so you can see why and what else can work.

Other ways to borrow

What a loan can cost in Minnesota

Worked examples at an illustrative rate, never above Minnesota's rate cap for that loan amount where the law sets one. They are examples, 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 places to turn in Minnesota, each linked to its official source and dated when we last checked it.

  • Lending regulator and complaints

    Minnesota Department of Commerce licenses lenders in Minnesota. Check a lender's license here, and file a complaint if something goes wrong.

    mn.gov Checked September 23, 2026

  • Attorney general consumer protection

    The attorney general's consumer protection office takes complaints about scams, unfair debt collection and other business practices.

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

  • 211

    Call 211 or visit your local 211 site to reach help with rent, utilities, food and other urgent bills.

    211unitedway.org Checked September 23, 2026

  • Legal aid

    Free civil legal help for people with low incomes, including debt collection, repossession and eviction problems. Income limits vary.

    mnlegalservices.org Checked September 23, 2026

  • Nonprofit credit counseling

    Nonprofit counselors can help you build a budget or set up a debt management plan. Look for an NFCC or FCAA member agency.

    nfcc.org Checked September 23, 2026

  • Federal complaints

    Submit a complaint about any lender to the Consumer Financial Protection Bureau.

    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.
  • 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.

The rules lenders follow in Minnesota

These rules protect you as a borrower and explain the labels above. Each one links to the source we took it from. 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 under Minn. Stat. Ch. 56 for general installment lenders,... Minn. Stat. Ch. 56, rates at 56.131 incorporating 47.59 subd. 3; Minn. Stat. 47.601; 47.603
Title loans[4][5] Allowed 36% APR Not set by statute Not set by statute None listed likely governed by Minn. Stat. Ch. 56 or Ch. 47 in combination with vehicle-title provisions in Ch. 168A, but no specific title-loan...
Payday loans[6][7][1][8][3] 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.

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, which is directly relevant to lead generators.

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.

Money snapshot for Minnesota

Minnesota household and credit data
MeasureValueYear
Fair market rent, 2 bedroom (monthly)[9]$1,504FY2026
Population[10]5,793,1512024
Unemployment rate[11]4.4%2026-08

Guides for Minnesota borrowers

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.

Can I get a loan in Minnesota with a 500 credit score?

Lenders look at more than your score, such as income and existing debts, and each sets its own rules. BadCreditMD cannot tell you whether a lender will approve you.

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. Census Bureau, Population Division. Vintage 2024 National and State Population Estimates. Retrieved September 23, 2026.
  11. U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.

Important disclosures

Illustrative range for installment loans in Minnesota: APRs from 5.99% to 33%, where the state APR cap is 33% at most and lower on larger loans. This range is not a quote; each lender sets its own rates. Your APR depends on your credit, income, state and the lender.

  • 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.
  • There is no fee to use BadCreditMD. Lenders or our lending network partner may pay us.
  • Lenders set their own rates, fees and terms. Offers depend on your credit, income, state of residence and each lender's criteria.
  • Our service is not available in all states, and not every loan type is available in every state.
  • By submitting a request you consent to lenders checking your credit, which may affect your score, and to your information being shared with them.
  • Submitting a request does not mean you will be approved or funded, or that you will receive any particular amount or rate.
  • 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.
  • BadCreditMD is operated by BadCreditMD, LLC, 30 N Gould St Ste N, Sheridan, WY 82801. Contact: pr@badcreditmd.com. Full details are on our disclosures page and disclaimer.
  • 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.