Payday Loans in Minnesota (MN)

No matter how they are called, payday loan, establishment loan or insta loan, these sort of small sum loans have become the savior and helper for many people who are in a bad spot financially.

What are the payday loan laws and regulations in Minnesota?

You can legally obtain a payday loan in the state of Minnesota. Loans are guarded and regulated by the Consumer loan act applies. Md. Code Com. Law § 12-101 et seq.

  • Maximum amount: USD 350
  • Maximum length cannot exceed 30 days
  • APR for a 14 day loan of USD 100: 390%
  • Collection fee: USD 30 as NSF fee
  • No rollovers permitted

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Payday loans should be regarded as the very last resort, when there is really noone to turn to when you get in trouble. Sometime the price to pay, to get such a loan is just way too high for the loan to be of any help.

That’s the reason the payday and other types of insta loans which come with very high costs and interest rates are prohibited in several states as of today. Other states are trying to cut back on the interest rates with more or less success so far.

Contrary to all dangers, there are still so many people who need a payday loan, that today, the internet is literally full of online companies offering payday loans throughout the state.

Although the legality of these offers is really questionable as it really depends of the exact state, whether they consider these loans a legal or a prohibited activity. Let’s get to see what the payday loan situation is in the state of Minnesota.

What are the payday loan laws and regulations in Minnesota?

You can legally obtain a payday loan in the state of Minnesota. Loans are guarded and regulated by the Consumer loan act applies. Md. Code Com. Law § 12-101 et seq.

  • Maximum amount: USD 350
  • Maximum length cannot exceed 30 dayss
  • APR for a 14 day loan of USD 100: 390%
  • Collection fee: USD 30 as NSF fee
  • No rollovers permitted

How much can you be charged by a payday lender in Minnesota?

Lenders can apply the following charges:

  • Default charge: 2, 75 % of the borrowed amount
  • Extra charge: USD 5.50 for all loans which are up to USD 50 for all loans which are over USD 100 an extra charge of 10% of the total amount may apply.
  • Administrative fee: USD 5
  • There is no information whether borrower can apply for getting multiple payday loans at a time.

We advise all borrowers to first get in touch with the regulatory office for further regulations on payday loans. The first point of contact is the Minnesota Department of Commerce, Division of Financial Examinations.

Your rights as a borrower in MN

Repayment plan and cooling off period is not regulated therefore it depends on the lender. Lenders including all companies which also would like to deal with borrowing payday loans will need to get licensed for being able to do it so. They must therefore contact the Minnesota Department of Commerce for further information and conditions for the license.