Payday loans in Minnesota
Minnesota allows payday loans as consumer small and short-term products from Commerce-licensed lenders, yet the all-in APR has been capped at 50% since January 1, 2024.
- Payday lending
- Allowed
- Max cost
- 50% APR
- Top amount
- Consumer small loans with one payment are limited to $350; consumer short-term loans are limited to $1,300.
Are payday loans legal in Minnesota?
Yes, Minnesota law allows payday loans under rules for consumer small and short-term lending. Small loans reach up to $350 for 30 calendar days, while short-term loans can go as high as $1,300. Starting in 2024, the annual percentage rate, which shows the yearly borrowing cost, cannot exceed 36 percent. After reviewing your ability to repay, lenders may charge up to 50 percent, but no other fees are allowed. With a 50 percent rate, borrowing $400 for 14 days will cost you about eight dollars in total.
Completing a loan online while inside Minnesota makes it a Minnesota transaction. You owe nothing and the loan is void if a short-term lender overcharges or operates without a Minnesota Department of Commerce license. In 2024, unlicensed loans from Strategic Solution Services were voided by the department, while in 2026 the Attorney General brought a suit against the Brigit app. Before borrowing, confirm the lender has a license; report any unlicensed company demanding payment to the department.
- Since January 1, 2024 Minnesota limits payday loans to an all-in APR of 50%, while loans above 36% need an ability to repay analysis.
- At 50% APR, Commerce notes a 14-day $400 loan can now total only about $8.
- A 2023 rule against evasion treats any company holding the main economic interest in a loan as the lender, even if it claims to be an agent or service provider.
- Borrowers owe nothing on short-term loans that exceed the cap or lack a license because such loans are void.
- During June 2026 the Attorney General sued the cash advance app Brigit, saying it is an unlicensed payday lender and its APRs regularly exceed 300%.
- During July 2024 Commerce voided every payday loan issued to Minnesotans by unlicensed Strategic Solution Services (Arrow Mountain Funding, Line of Credit Now); the penalty was $10,000.
Minnesota payday loan laws
- Law in force
- Minnesota's laws on small consumer loans and short-term consumer loans
- Cited as
- Minn. Stat. 47.60 on consumer small loans, 47.601 on consumer short-term loans, 47.603 on ability to repay
- Fees under the law
- The annual percentage rate can be as high as 50 percent. Section 47.603 must be followed for loans above 36 percent, and no other payments or charges are allowed.
- Most you can borrow
- Consumer small loans with one payment are limited to $350; consumer short-term loans are limited to $1,300.
- How long a loan runs
- Consumer small loans last no more than 30 calendar days.
- Rollovers
- Proceeds from another loan by the same lender or related interest cannot be used to repay a loan.
- Loans you can hold at once
- Your outstanding consumer small loan principal cannot go above $350 at any one time, and loans may not be split.
- Installment lending limits
- Loans regulated under chapter 56 fall under section 47.59: the higher of 21.75% APR or 33% per year on the first $1,425, with 19% a year above $1,425 (Minn. Statutes 47.59 and 56.131)
Also checked against mn.gov. Full statute text.
Online lenders that list Minnesota
Six companies we track say they lend in Minnesota: 3 online installment lenders and 3 tribal lenders.
All three lenders with a posted APR post a top APR above Minnesota's 50% APR cap.
| Lender | Kind | Posted APR |
|---|---|---|
 NetCredit | Installment | 34.99% to 99.99% |
 OppLoans | Installment | 99% to 195% |
 Rise Credit | Installment | 60% to 299% |
Tribal loans in Minnesota
In Minnesota, a consumer short-term loan is void if the lender lacks a Commerce licence or charges more than allowed; online loans to state residents count as Minnesota transactions, and Commerce has voided payday loans from an unlicensed lender.
On the immunity claim tribal lenders make, see are tribal loans legal.
Three tribal lenders we track list Minnesota as a state they lend in. One of the three publishes an APR: 325% to 725%. That lender posts a top APR above Minnesota's 50% APR cap.
| Lender | Posted APR |
|---|---|
 BrightLending | 325% to 725% |
 Minto Money | Not published |
| American Web Loan | Not published |
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Lender cases and orders in Minnesota
- 2026 · Minnesota Attorney GeneralBrigit: A pending lawsuit claims Brigit operates as an unlicensed payday-style lender with advances that often have APRs above 300% Source
- 2026 · Minnesota Attorney GeneralPlain Green Loans: Plain Green faced a suit over loans near 700% APR. A court-approved September 2026 settlement cancels interest on Minnesota loans and stops future illegal lending there. Source
- 2023 · Minnesota Attorney GeneralBrightLending: A federal complaint says the individuals who control Bright Lending plus two sister lenders charged interest of 400 to 800 percent, which the complaint says broke usury law. Source
Minnesota and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| Minnesota | Allowed | 50% APR | Consumer small loans with one payment are limited to $350; consumer short-term loans are limited to $1,300. |
| Iowa | Allowed | $15.00 per $100 borrowed | Across the checks held from one borrower, the total cannot exceed $500. |
| North Dakota | Allowed | $20.00 per $100 borrowed | At most $500 may be disbursed in one transaction; a single customer's total outstanding obligations may not exceed $600 in all. |
| South Dakota | Banned | 36% APR | None allowed |
| Wisconsin | Allowed | None in the law | interest and fees count toward the combined total due to all payday licensees, capped at whichever is smaller: 35% of gross monthly income or $1,500 |
Minnesota loans with no credit check
Installment loan rates: Loans regulated under chapter 56 fall under section 47.59: the higher of 21.75% APR or 33% per year on the first $1,425, with 19% a year above $1,425 (Minn. Statutes 47.59 and 56.131).
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in Minnesota
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the Minnesota Department of Commerce.
- Had trouble with a lender? Report the lender.
Sources for Minnesota
- For a consumer small loan, the lender can set an APR as high as 50%.; You cannot be charged any extra fees on a consumer small loan.; A cash advance of $350 or less counts as a consumer small loan.revisor.mn.gov
- With a consumer short-term loan, you borrow $1,300 or less and owe a large payment within 60 days.; The 50% APR cap also applies to consumer short-term loans, with no other fees allowed.; Some consumer short-term loans are void, meaning the borrower does not owe anything.revisor.mn.gov
- Changes from 2023 became active on January 1, 2024.; The APR limit sits at 36%, but can go to 50% if your repayment ability is checked.; Commerce notes a $400 loan for 14 days can cost about $8 at 50% APR.mn.gov
- A regulated loan may carry whichever is higher: 21.75% APR or 33% annually on the lower principal tier.revisor.mn.gov
- On June 10, 2026, the AG filed suit against Brigit for acting as an unlicensed online payday lender.; According to the AG, APRs on loans from Brigit often go over 300%.ag.state.mn.us
- In July 2024, Commerce declared payday loans from an unlicensed lender to be void.; This unlicensed lender received a fine of $10,000.mn.gov
- According to Commerce, payday lenders make loans up to $350 for periods under about 30 days.mn.gov
- NMLS is where Commerce's licence directory directs consumer small loan lenders.mn.gov
- Commerce looks into consumer complaints filed against regulated companies.mn.gov