Compare your loan options in South Dakota

If you’re short on cash and need a small amount to get by, a payday loan might be a decent option for you. South Dakota has limits on how much a lender can charge, making it a much safer prospect than payday loans in other states.

How do payday loans in South Dakota work?

Payday loans are governed by South Dakota Codified Laws 54-4-36 et seq. and must be licensed to operate. If a lender violates the state limits, it is a Class 1 misdemeanor, so be sure you know the laws and check lender licenses before applying to be sure you’re working with a legit lender.

• Maximum loan amount: $500
• Loan term: Not specified
• Maximum APR: 36%
• Finance charge: A 14-day $100 loan costs $1.39
• Collection fees: Not specified

State laws don’t specify the maximum number of payday loans you can have out at once.

How do I apply for a payday loan?

You can apply for a payday advance in South Dakota in two main ways. You can submit an online application or apply with a lender that has store locations in your area. You’ll typically have to meet these eligibility criteria: you should be at least 18 years of age, be an American citizen or permanent resident and have a regular source of income.

Although applications differ between lenders, you’ll have to supply some personal information like your name, date of birth, Social Security number and a valid form of ID. Lenders will also want to know about your employment status and income. If you’re applying online, you’ll also need to provide details about your checking account.

How to repay a short-term loan in South Dakota

Since South Dakota law doesn’t specify a minimum or maximum loan term for short-term loans, the repayment period will depend on the lender you’re working with.

It’s best to repay your loan on time to avoid penalty charges. If you can’t make the payments on time, you’re allowed to roll over or refinance a payday loan up to four times. Every time you want to roll over the loan, you could be charged at least 10% of the original loan amount.

Should I consider any other options besides payday loans?

When you’re facing normal bills and unexpected expenses, it can be difficult to balance your budget. South Dakota offers a few programs to help you out. Low Income Energy Assistance, Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) can all be useful when you’re trying to get by.

Payday loan alternatives in your area

Bottom line

Whether it’s a car repair or medical expense, a payday loan can be helpful when you’re trying to get by. South Dakota caps interest at 36% to protect consumers from overly expensive loans. Be sure your lender is abiding by the law before you apply so you get the best rates possible.

Frequently asked questions about South Dakota payday loans

• Does South Dakota require a cooling off period between loans?

  No. There isn’t an official cooling off period between payday loans, but you should avoid taking out mutliple loans back to back. Despite the interest being capped at a very low rate in South Dakota, it can still add up and end up costing you much more in the long run.

• Can I get a repayment plan?

  South Dakota law doesn’t require lenders to provide a repayment plan, but you should still request one if you’re having trouble paying back your loan. Many lenders are willing to work with you when you’re struggling to meet your payments.

• Who should I contact to file a complaint about a payday lender in South Dakota?

  You should contact the South Dakota Division of Banking.

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