Thinking of applying for a payday loan in Minnesota? We’re here to help.
If you need money now and you live in Minnesota, a payday loan may be an option.
Our guide will take you through the information you need to know in order to make an informed decision before you sign a contract.
Are payday loans legal in Minnesota?
Yes, payday loans are legal in Minnesota. The state permits and oversees the operation of payday loan providers as per the Minnesota Statute 47.60. These regulations require that payday lenders operate as registered consumer small loan lenders.
The maximum you can borrow is $350, and like all payday loans, you have to pay back the principle and interest in a single installment, up to 30 days from when you sign the contract. The following chart explains the interest caps and fees you have to pay based on the amount you borrow. For loan amounts between $50.01 to $350, lenders may charge a percentage of the borrowed funds as well as a $5 fee.
|Loan Amount||Fee||$50 or less||$5.50|
|$50.01 – $100||10%|
|$100.01 – $250||7% (minimum of $10)|
|$250.01 – $350||6% (minimum of $17.50)|
If you have a complaint, contact the Minnesota Department of Commerce.
Consider these lenders for a short-term loan in Minnesota
Check the websites of any providers you’re interested in to confirm they operate in Minnesota.
Why a payday loan might benefit you
Here are some features to keep in mind when you’re making your decision.
- Bad credit is OK. Short-term lenders tend to apply slightly less stringent lending criteria when compared to banks. Instead of looking only at your credit score, they take your existing financial situation and ability to repay into account.
- Applying is easy. Some Florida payday loan lenders have storefront loans, and others work entirely online, meaning you can apply from anywhere.
- Get money quickly. In-store applications can be processed the same day so you can see your money within hours. Online applications take 24 hours to process, but the money will be directly deposited into your bank account.
- Use the money for any purpose. What you choose to do with the money you get is basically up to you. You can use this money to travel, pay bills, repair your car or just to get by during a rough patch.
Charges and fees you can expect to pay with a short-term loan in Minnesota
The following restrictions apply to fees and charges for payday loans in Minnesota:
- APR. Payday lenders can’t charge more than 390% in interest and fees.
- Financing fees. It depends on how much you borrow; see the chart above.
- Loan extension fees. Upon maturity, the rate can’t exceed 2.75% per month. The lender will calculate this daily by using one-thirtieth of the monthly contract rate.
- Collection fees. In the event of a payment being declined, you may be charged an NSF fee up to $30.
- Prepayment fees. You can repay your loan before the due date without worrying about any prepayment penalties.
What you need to qualify for a loan
If you want to be approved for a payday loan, you must
- Be at least 18 years old
- Be a US citizen or a permanent resident
- Be permanently employed
- Have an income of $1,000 per month
You’ll also need to provide some basic information.
- Your name, date of birth, Social Security number and a valid form of ID
- Your residential address, email address and phone number
- Details about your employment and income
- If you’re applying online, details of your existing checking account
Where else are payday loans available?
Compare payday loans in your state
Have any more questions about Minnesota payday loans?
How much time does it take to apply for a payday loan?
No matter if you apply online or in-store, as long as you have the required information, the process should not take more than 5 to 10 minutes.
How much time do I get to repay a Minnesota payday loan?
The maximum loan term of a payday loan in Minnesota is 30 days.
How many payday loans can I get concurrently?
There is no limit on the number of payday loans you can have at any given time. However, you can’t take out a new loan to pay for an existing loan.