Payday loans in South Dakota
South Dakota voters approved a 2016 law that caps every licensed money lender at 36% yearly, including all fees, so payday loans are effectively banned.
- Payday lending
- Banned
- Max cost
- 36% APR
- Top amount
- None allowed
Are payday loans legal in South Dakota?
No. Payday lending in South Dakota is effectively banned under the state licensing law for money lenders, which voters revised by approving Initiated Measure 21. Licensed money lenders may not charge you an annual rate higher than 36 percent. That 36 percent yearly limit has applied to title, installment, and payday loans since November 16, 2016, covering every fee and extra service or product. This cap does not apply to state trust companies, banks, or federally insured institutions.
Any loan from a licensed lender charging over 36 percent is void, meaning the lender cannot collect interest, fees, or even the principal. The principal means the original sum you borrowed. For any loan given to a resident after June 30, 2015, an unlicensed lending business may collect only the principal. You are not responsible for paying unlawful charges. You can file your complaint on the internet if the South Dakota Division of Banking regulates a lender that breaks these rules.
- The 36% cap came through Initiated Measure 21, approved by voters November 8, 2016 and effective November 16, 2016.
- The limit is all-in, including fees plus any add-on product or service, applying to payday, title, and installment lenders.
- Any loan violating the cap is void, preventing the lender from collecting even the principal amount.
- Since mid-2015, unlicensed lending businesses may collect only the principal on loans made to residents.
- State trust companies, federally insured institutions, and banks fall outside this cap.
South Dakota payday loan laws
- Law in force
- South Dakota's money lender licensing law, as Initiated Measure 21 amended it
- Cited as
- SDCL 54-4-44
- Fees under the law
- A licensee may not contract for or receive any finance charges above a yearly rate of thirty-six percent. That limit includes all charges on any ancillary product or service.
- Installment lending limits
- For each lender licensed under SDCL chapter 54-4, the 36% annual rate includes all fees and add-on products.
Also checked against dlr.sd.gov. Full statute text.
Online lenders that list South Dakota
Six companies we track say they lend in South Dakota: 1 online installment lender and 5 tribal lenders.
The one lender with a posted APR posts a top APR above South Dakota's 36% APR cap.
| Lender | Kind | Posted APR |
|---|---|---|
 NetCredit | Installment | 34.99% to 99.99% |
Tribal loans in South Dakota
Unlicensed lending is a misdemeanor in South Dakota. For loans after June 30, 2015, a lending business that is unlicensed and non-exempt can enforce or collect only the principal from a resident.
On the immunity claim tribal lenders make, see are tribal loans legal.
Five tribal lenders we track list South Dakota as a state they lend in. Two of the five publish an APR, from 99% to 725%. Both post a top APR above South Dakota's 36% APR cap.
| Lender | Posted APR |
|---|---|
 Spotloan | 99% to 490% |
 BrightLending | 325% to 725% |
 MaxLend | Not published |
 Minto Money | Not published |
| American Web Loan | Not published |
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South Dakota and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| South Dakota | Banned | 36% APR | None allowed |
| Iowa | Allowed | $15.00 per $100 borrowed | Across the checks held from one borrower, the total cannot exceed $500. |
| Minnesota | Allowed | 50% APR | Consumer small loans with one payment are limited to $350; consumer short-term loans are limited to $1,300. |
| Montana | Banned | 36% APR | $300 (not including the fee) |
| Nebraska | Banned | 36% APR | A total of $500 across all checks held from a single borrower |
| 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. |
| Wyoming | Allowed | Fees run $30 or 20% monthly, with the higher figure applying. | W.S. contains no set limit. 40-14-363 |
South Dakota loans with no credit check
Installment loan rates: For each lender licensed under SDCL chapter 54-4, the 36% annual rate includes all fees and add-on products.
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in South Dakota
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the South Dakota Department of Labor and Regulation, Division of Banking.
- Had trouble with a lender? Report the lender.
Sources for South Dakota
- No licensed money lender can charge you over 36% per year.; Every fee and add-on product tied to the credit falls under the 36% limit.; Any loan exceeding the cap is void, including the principal amount.sdlegislature.gov
- To cap money lender charges, voters approved Initiated Measure 21 (state release dated November 10, 2016).; Payday loans, title loans, and installment loans all fall under this measure.; Loans made, renewed, or rolled over after November 15, 2016 must follow the cap.news.sd.gov
- The measure does not apply to banks or other federally insured institutions.dlr.sd.gov
- The Division of Banking licenses title and payday lenders as money lenders.dlr.sd.gov
- It is a Class 1 misdemeanor to lend money without a licence.; Section 54-4-76 governs loans that unlicensed lending businesses made to residents after June 30, 2015.; Collection on such loans is limited to the principal only.sdlegislature.gov
- If the Division of Banking regulates a lender, complaints about it are filed online.dlr.sd.gov