Minnesota Payday & Small-Dollar Loan Laws
Payday loans legal (capped)
Minnesota caps consumer small loans at $350 with tiered finance charges ranging from $5.50 on loans up to $50 to $25 plus 5% on loans up to $350.
Minnesota Lending Overview
Minnesota lending regulations permit consumer small loans, commonly known as payday loans, but impose specific limitations on loan sizes and associated costs. Borrowers in the state may access a maximum of $350 for a duration not exceeding 30 days. The finance charges follow a tiered structure established by state law, beginning at $5.50 for loans under $50 and reaching $25 plus 5% for the maximum $350 amount. These fees often result in an annual percentage rate averaging approximately 390%.
Residents seeking immediate capital often utilize these short-term options or explore alternative installment products with longer repayment schedules. Emergency loans and standard personal loans remain common choices for covering unexpected expenses or larger financial gaps. These various products provide different levels of accessibility depending on the borrower's credit history and income. Residents typically compare these state-regulated options to find terms that align with their specific budgetary needs and repayment capabilities.
Maximum loan amount
$350
Maximum loan term
30 days max
Maximum APR / finance charge
~390% APR (tiered)
Rollover / renewal rule
No rollovers permitted
Cooling-off period
None required
Governing statute
Minn. Stat. § 47.60
Who regulates lenders in Minnesota
Minnesota Department of Commerce
File a complaint with the regulator above if a lender violates state law. You can also file with the CFPB.
Minnesota loan options
Other state loan laws
Reviewed by Darnell Pierce, MBA. Last reviewed January 2026. This page is informational, not legal advice — verify current rules with the state regulator before borrowing.