Loan Options in Minnesota

Minnesota allows both payday loans and installment loans. The Minnesota Department of Commerce regulates both products, and lenders must hold a valid state license before offering either one to you.

Payday lending falls under Minn. Stat. § 47.60 (consumer small loans) and § 47.601 (payday-specific rules). Those statutes set maximum loan amounts, fee structures, and repayment terms. Installment loans follow the state's consumer lending framework with their own caps on rates and charges.

Check the Minnesota Rates & Fees page for current dollar limits, fee caps, and APR ceilings. For product-specific details, see Minnesota Payday Loans or Minnesota Installment Loans. If a high-cost loan doesn't fit your situation, explore alternatives available in Minnesota.

• Licensing requirement. Every consumer small-loan lender and payday lender must be licensed by the Minnesota Department of Commerce. Look up a lender's license online before sharing personal information.
• Caps on loan amounts and rollovers. If you're taking out a payday loan, Minnesota law limits both the principal amount and how many times it can be rolled over. That helps break the debt-trap cycle common in states without these protections.
• Written disclosure before you sign. Lenders must show you the total cost of borrowing-including all fees and the annual percentage rate-before you sign anything. If they won't put it in writing, walk away.
• You can file a complaint. When a lender violates Minnesota lending law, file a complaint with the Department of Commerce. They investigate and can take enforcement action.

Before you share personal or financial information with any lender or matching service, review the LendUp scams and safety guide for red flags and protective steps.