- Minnesota caps small-loan rates at about 36% APR.
- Online lenders that offer triple-digit loans to residents anyway may be operating illegally.
- Credit unions, bank small-dollar loans and cash advance apps are legal alternatives.
Why payday loans are not available in Minnesota
A 2023 law capped payday loans at 36% APR from January 1, 2024, with limited exceptions up to 50% that require underwriting. At that rate, payday lenders say they cannot operate, so traditional payday loans are not offered.
Some online lenders target Minnesota residents anyway, often claiming tribal or offshore status. A loan that breaks Minnesota law may be void or uncollectable in part. Check any lender on NMLS Consumer Access, and report problems to your state attorney general and the CFPB.
What you can do instead in Minnesota
- Credit union payday alternative loans (PALs): $200–$2,000 at no more than 28% APR. Search for a federal credit union in Minnesota that offers them. See how PALs work.
- Your bank’s small-dollar loan, if it offers one. See bank small-dollar loans.
- Cash advance apps for $20–$500 based on your direct deposits. See apps compared.
- 211: call or text 211 for local help with rent, utilities and food.
See more in 12 ways to get emergency cash.
Installment loans in Minnesota
Licensed lenders may still offer personal or installment loans within Minnesota’s rate limits. These usually require a credit check and are repaid over months. Compare offers with our loan calculator.
Tried the free options first?If you still need a small short-term loan, you can send one request to our lender network. Compare the cost carefully.
See loan optionsFrequently asked questions
Are payday loans legal in Minnesota?
Not in practice. A 2023 law capped payday loans at 36% APR from January 1, 2024, with limited exceptions up to 50% that require underwriting, so payday lenders do not operate in Minnesota.
What can I use instead of a payday loan in Minnesota?
Credit union payday alternative loans, bank small-dollar loans, cash advance apps, and local help through 211.
Is an online payday loan legal if I live in Minnesota?
Lenders generally must follow Minnesota law when lending to residents. Loans that exceed the state’s limits may be illegal; check the lender’s license and report problems to the attorney general and the CFPB.