Nebraska
Illegal Rollovers of Payday Loans Lead to Revocation of Lender License
In Nebraska, it's illegal to rollover payday loans. The law allows for no extension of any kind.
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Payday Loans in Nebraska
Payday Loan Laws in Nebraska (2026)
High-cost payday loans are effectively gone in Nebraska. In 2020, about 83% of voters passed Initiative 428, capping the APR on delayed-deposit (payday) loans at 36%. Rates had averaged around 405%, so the cap made the old payday model unviable. Loans up to $500 over 34 days are still permitted in theory, but only within the 36% ceiling.
| Status | Legal in name, but capped at 36% APR — high-cost payday ended |
|---|---|
| APR cap | 36% (Initiative 428, 2020) |
| Voter approval | About 83% in 2020 |
| Previous average APR | Around 405% before the cap |
| Maximum loan | $500 |
| Loan term | Up to 34 days |
| Rollovers | Prohibited |
| Regulator | Nebraska Department of Banking and Finance |
| Law | Initiative 428 (2020); Delayed Deposit Services Licensing Act (Neb. Rev. Stat. § 45-901+) |
What Nebraska's 36% cap means for you
- Nebraska voters approved the 36% cap by about 83% in 2020 — one of the most lopsided consumer-finance ballot wins anywhere.
- Before the cap, the average payday APR was roughly 405%; the 36% ceiling made that model unviable.
- Payday loans up to $500 over 34 days are still allowed in theory, but only within 36% APR, so few if any high-cost lenders remain.
- If a lender offers you a payday loan above 36% APR, it is breaking Nebraska law.
Problem with a lender? File a complaint
Payday (delayed deposit) lenders in Nebraska are regulated by the Department of Banking and Finance. To report a violation or an illegal lender, use the online complaint form.
Alternatives to a payday loan
With the 36% cap, look to a credit-union small loan or payday-alternative loan, an employer paycheck advance, or nonprofit credit counseling. See our guide to payday loans and alternatives.
Your debt rights in Nebraska
A lender can garnish wages in Nebraska only after it sues and wins a court judgment, and federal law then caps how much can be taken. Nebraska 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 Nebraska Department of Banking and Finance before borrowing. Last reviewed 2026.
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Frequently asked
Are payday loans legal in Nebraska?
They are legal in name, but a 2020 voter-approved 36% APR cap (Initiative 428) ended the high-cost payday model — rates had averaged about 405%.
What is Nebraska's payday loan interest cap?
36% APR, approved by voters in 2020.
Can I still get a payday loan in Nebraska?
Loans up to $500 over 34 days are allowed in theory, but only within the 36% cap — so few if any high-cost lenders still operate.
Who regulates payday lending in Nebraska?
The Nebraska Department of Banking and Finance.
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