Montana Payday & Small-Dollar Loan Laws
36% APR cap (Initiative 164)
Montana voters capped payday loans at 36% APR via Initiative 164 in 2010, effectively ending storefront payday lending.
Montana Lending Overview
Montana state law establishes a 36% annual percentage rate cap on short-term loans. This limit, enacted by voters through Initiative 164 in 2010, includes all interest and fees charged to the borrower. Under these regulations, the maximum amount for a payday loan is $300 with a repayment period no longer than 31 days. Because these stringent interest rate controls make traditional high-cost storefront lending unprofitable, the availability of conventional payday products remains limited compared to states without such caps.
Residents seeking immediate funds typically evaluate various credit products that comply with the state's interest rate ceiling. Common options include installment loans, personal loans from credit unions, and small-dollar emergency advances through online platforms or local banks. These lending structures allow for longer repayment terms and predictable monthly payments. Borrowers often use these financial tools to cover unexpected medical bills, car repairs, or temporary cash flow gaps while remaining within the legal protections provided by Montana's consumer lending statutes.
Maximum loan amount
$300
Maximum loan term
31 days max
Maximum APR / finance charge
36% APR (all-in)
Rollover / renewal rule
No rollovers permitted
Cooling-off period
None required
Governing statute
Mont. Code Ann. § 31-1-701
Who regulates lenders in Montana
Montana Division of Banking & Financial Institutions
File a complaint with the regulator above if a lender violates state law. You can also file with the CFPB.
Montana 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.