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Payday Loans in Minnesota
Payday Loan Laws in Minnesota (2026)
Yes — payday loans are legal in Minnesota, but a 2024 reform sharply cut the cost. Effective January 1, 2024, the old per-dollar fee schedule was replaced with a hard 50% all-in APR cap, and any loan above 36% APR requires the lender to run an ability-to-repay check. Small loans run up to $350 (or $1,300 for a short-term loan), for no more than 30 days, with no rollovers.
| Status | Legal — reformed (2024) |
|---|---|
| APR cap | 50% all-in (interest + all fees), since January 1, 2024 |
| Ability-to-repay | Required for any loan above 36% APR |
| Maximum loan | $350 (small loan); $1,300 (short-term loan) |
| Loan term | No more than 30 days (small loan) |
| Rollovers | Prohibited — can't repay one loan with another from the same lender |
| Old tiered fees | Repealed in 2024 |
| Regulator | Minnesota Department of Commerce |
| Law | Minn. Stat. § 47.60 & § 47.601 (amended 2023, eff. Jan 1, 2024) |
What Minnesota's 2024 reform means for you
- Since January 1, 2024, all charges must fit within a 50% all-in APR — one of the strictest caps among states that still allow payday loans.
- The reform scrapped the old per-dollar fee schedule, so lenders can no longer stack tiered fees on top of interest.
- Any loan above 36% APR triggers a mandatory ability-to-repay check before the lender can issue it.
- Loans are capped at $350 (or $1,300 for a short-term loan), run up to 30 days, and can't be rolled over.
Problem with a lender? File a complaint
Payday lenders in Minnesota are overseen by the Department of Commerce. To report a violation or an illegal lender, use the online complaint form.
Alternatives to a payday loan
Even at the 50% cap, compare a credit-union payday-alternative loan, an employer paycheck advance, or a payment plan with the biller first. See our guide to payday loans and alternatives.
Your debt rights in Minnesota
A lender can garnish wages in Minnesota only after it sues and wins a court judgment, and federal law then caps how much can be taken. Minnesota does not run a statewide payday-loan database, so limits on how many loans you can hold are harder to track from lender to lender. Your rights when you cannot repay are set by a mix of federal and state law — these guides explain how they work:
- Can a payday lender sue you?
- Can payday loans garnish your wages?
- Do payday loans affect your credit?
- Payday loan statute of limitations
- How many payday loans can you have?
- How to get out of payday loan debt
Disclaimer: general information, not legal or financial advice. Laws change — verify the current rules with the Minnesota Department of Commerce before borrowing. Last reviewed 2026.
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Frequently asked
Are payday loans legal in Minnesota?
Yes, but a 2024 reform capped the all-in APR at 50% and repealed the old tiered fees. Loans are overseen by the Department of Commerce under Minn. Stat. 47.60 / 47.601.
What is Minnesota's payday loan cap?
A 50% all-in APR (interest plus all fees), effective January 1, 2024. Any loan above 36% APR also requires an ability-to-repay check.
How much can you borrow with a payday loan in Minnesota?
Up to $350 for a consumer small loan, or up to $1,300 for a consumer short-term loan.
Can a Minnesota payday loan be rolled over?
No. A loan can't be repaid with the proceeds of another loan from the same lender.