Minnesota payday loan laws is the answer to “are payday loans legal in Minnesota”. This guide gives the Minnesota figures in a dated table, explains in plain words what they mean, walks through the steps, and points to the official forms and free help.
The Minnesota payday loan laws figures on this page were read in the Minnesota statute as of October 2026; confirm the current text before you rely on them.
Minnesota payday loan laws at a Glance
| Status | Restricted |
| Fee or APR cap | since January 1, 2024: no more than 50% APR including all fees, and any loan above 36% APR requires the lender to check that you can afford to repay it |
| Statute | Minn. Stat. 47.60, 47.601, 47.603 (as amended effective Jan. 1, 2024) |
In This Minnesota payday loan laws Guide:
What Minnesota Payday Loan Laws Cover
A payday loan is a small, short-term cash advance, usually repaid in one payment from your next paycheck or bank deposit. Minnesota calls these “consumer small loans” and “consumer short-term loans.” Under the current definition, a short-term loan can be up to $1,300 of principal with a large payment due within 60 days.
A lender making these loans to Minnesota residents generally must hold a license from the Minnesota Department of Commerce and keep its total charges under the state cap.
The Minnesota payday loan laws Figures
| Rule | Bonus Bank Daily verified figure |
|---|---|
| Status | Restrictedstatute — verified Oct 2026 |
| Fee or APR cap | since January 1, 2024: no more than 50% APR including all fees, and any loan above 36% APR requires the lender to check that you can afford to repay itstatute — verified Oct 2026 |
| Statute | Minn. Stat. 47.60, 47.601, 47.603 (as amended effective Jan. 1, 2024)statute — verified Oct 2026 |
The Minnesota payday loan laws figures on this page were read in the Minnesota statute as of October 2026; confirm the current text before you rely on them.
What a Loan Costs Under Minnesota Payday Loan Laws
Say you borrow $300 for 14 days and pay $4 in total charges. That works out to an APR of about 34.8%. At the highest rate the cap allows, the same loan would cost about $5.75. Before the January 1, 2024 changes, Commerce data showed the average Minnesota payday loan in 2022 carried an annual rate of about 202%, which would be about $23 on that same $300, 14-day loan.
Online Lenders and Minnesota Payday Loan Laws
Lenders who make loans to residents generally must follow the state’s rules and hold its license. Check the regulator’s license lookup before giving any lender access to your bank account.
Your Rights Under Minnesota Payday Loan Laws
Borrowers often have rights to a repayment plan, limits on bounced-check fees, and the federal right to stop a lender’s automatic withdrawals by notifying the bank.
Alternatives to Loans Under Minnesota Payday Loan Laws
Many Minnesota credit unions offer small-dollar loans, often called payday-alternative loans, at much lower rates. You may be able to ask your employer for a paycheck advance, or ask the original creditor (a utility, landlord or medical provider) for a payment plan. Your county human services office runs emergency assistance programs, and nonprofit financial counselors can help you review your options at no or low cost.
Reporting a Lender That Breaks Minnesota Payday Loan Laws
You can file a complaint with the Minnesota Department of Commerce, which licenses these lenders, or with the Minnesota Attorney General’s Office at 651-296-3353. You can also file with the federal CFPB at consumerfinance.gov/complaint. Keep the loan agreement, every disclosure, your payment receipts, bank statements showing withdrawals, and copies of emails, texts or call logs from the lender or a collector.
Common Mistakes With Minnesota payday loan laws
The most common mistake is missing a deadline: court and creditor deadlines run whether or not you have read the papers, and a missed one usually cannot be undone. The second is relying on an old article or a friend’s experience in another state — the rules on this page differ from state to state and change often, which is why every figure here is dated.
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The third is not keeping copies: every letter, form, receipt and bank statement may matter later, so keep them together and note the date you received each one.
Free Help With Minnesota payday loan laws in Minnesota
You do not have to handle this alone or pay to get answers. The Minnesota court self-help center explains the forms and the steps, and court clerks can tell you where and how to file, although they cannot give legal advice.
Legal aid organizations represent many people at no cost when income is limited, and the Minnesota bar’s lawyer referral service can connect you with a lawyer for a low-cost first consultation. The Consumer Financial Protection Bureau accepts complaints about lenders, banks and debt collectors nationwide.
How We Verify the Minnesota payday loan laws Figures
Every figure in the table above comes from our 50-state data file, built by reading the Minnesota statute or an official compilation of it, and each one carries the month we last checked it. Our writers do not change those figures; they explain them. When the law changes, the figure is updated and the date moves.
If something on this page no longer matches the statute, the statute controls — and we want to hear about it.
Minnesota’s affordability check is a debt-to-income test for the loan period. The lender must first get documented proof of your net income, major bills and basic living expenses. The check passes only if you could cover your major obligations, the loan payment and basic living costs for 30 days after repaying. Each new advance counts as a new loan and needs its own check.
A lender that breaks these rules faces state penalties and may lose its license.
Next rung: the Minnesota maximum interest rate page shows the general cap behind these limits.
Minnesota — the bottom line
- Minnesota payday loan laws decide whether a payday loan can be offered at all, and at what cost — the status and cap are in the table above.
- Under Minnesota payday loan laws, licensed lenders must follow the fee, size and rollover limits; an unlicensed lender is a red flag.
- If a lender breaks the Minnesota payday loan laws, report it to the regulator named in the table.
Minnesota Payday Loan Laws FAQ
Are payday loans legal in Minnesota?
Only in a restricted form, under the limits in the table above.
Official Minnesota Sources & Resources
- Statute and the National Conference of State Legislatures payday lending statute summary — payday and small loans: https://www.revisor.mn.gov/statutes/cite/47.601
- Statute and the National Conference of State Legislatures payday lending statute summary — payday and small loans: https://www.revisor.mn.gov/statutes/cite/47.60/pdf
- Statute and the National Conference of State Legislatures payday lending statute summary — payday and small loans: https://mn.gov/commerce/money/consumer/financial-journey/payday-loans.jsp
- Minnesota Department of Commerce, Consumer Small Loan and Short-term Loan Legislative Changes Effective January 1, 2024: https://mn.gov/commerce/money/non-depository/payday-lenders/
- Consumer Financial Protection Bureau: consumerfinance.gov
This Minnesota payday loan laws guide was last verified against official Minnesota sources in October 2026. Rules change — confirm the current rule with the statute or a licensed attorney.
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Disclaimer: This guide is general information, not legal or financial advice. Bonus Bank Daily is an independent educational resource — not a law firm, not a bank, not a debt collector and not a government agency. Judgment, levy, interest-rate and debt rules change — every figure here carries the date we verified it.
Confirm the current rule with the statute, the court clerk or a licensed attorney in your state before you act.