Whether you live in Minneapolis, Duluth, or a smaller community along the Mississippi River, Minnesota can throw financial surprises your way — a sudden car repair, a medical bill, or an unexpected home expense. Short-term loans, including payday loans, might help you handle these challenges quickly. Under state law, Minnesota caps payday-style loans at $350 and regulates the fees to protect borrowers from steep charges.
Short-Term Personal Loan Rates and Fees in Minnesota
Minnesota’s payday loans (often called “Consumer Small Loans”) are governed by Minn. Stat. §47.60, limiting how much lenders can charge depending on the loan’s principal. Although there isn’t a standard APR cap, lenders must follow a tiered fee schedule, ensuring you know the maximum possible costs before you sign.
APRs
Because short-term loans in Minnesota last from a few days to a month, annualized APRs may appear high. However, the law focuses on a dollar-based fee structure rather than capping APR outright. Always check your final payoff amount and compare it to the length of the loan. That figure can give a clearer idea of the total cost.
Loan Amounts
Payday-style loans in Minnesota are limited to a maximum principal of $350. Some borrowers only need $100 or $200 to handle a sudden bill. Borrowing only the required amount can help ensure the repayment stays manageable on your upcoming payday.
Terms
Typically, these short-term loans are 2 to 4 weeks and align with your next paycheck. Some lenders may offer installment-like options. Confirm the repayment date and structure so you can plan to repay in full without having to roll it over or renew, which can add extra fees.
Fees
Minnesota uses a tiered fee structure for “Consumer Small Loans:”
- For loans up to $50: A fee of up to $5.50
- $50.01-$100: Up to 10% of the loan amount plus a $5 administrative fee
- $100.01-$250: Up to 7% of the loan amount plus a $5 administrative fee (minimum $10 total)
- $250.01-$350: Up to 6% of the loan amount plus a $5 administrative fee (minimum $17.50 total)
For example, if you borrow $300, the lender might charge up to 6% of $300 (=$18) plus a $5 fee, totaling $23. Remember that every lender’s approach can vary slightly within these legal limits, so confirm the exact breakdown before you agree.
Short-Term Loan Example
Consider a $200 loan with a two-week term:
- Loan Amount: $200
- Fee: Up to 7% ($14) plus a $5 administrative charge = $19
- Total Repayment: $219 at the end of 14 days
While the loan could solve a temporary shortage, ensure you plan to repay it thoroughly so you don’t incur further fees or need to borrow repeatedly.
Lending Regulations in Minnesota
The Minnesota Department of Commerce oversees payday and short-term lending, ensuring lenders comply with the fee structure outlined in Minn. Stat. §47.60. They must also disclose the full cost so you know exactly what you owe. For more details, visit the Minnesota Department of Commerce website.
| Regulation | Details |
|---|---|
| Maximum Loan Amount | $350 |
| Term Length | Often 2 to 4 weeks; due on the next payday |
| Fee Structure | Tiered, based on loan principal (up to 10% plus $5 admin fee) |
| Oversight | Minnesota Department of Commerce |
Our Benefits
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From the Twin Cities to Rochester or St. Cloud, our online form streamlines the process of requesting a short-term loan. You'll save time and avoid stacks of paperwork.Your Decision
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How to Request a Short-Term Loan in Minnesota
If approved, you might receive funds in your checking account before the next business day.
Provide Your Information
Complete our brief online form with your needed amount, income details, and other personal data.We Search Lender Offers
We see if a state-licensed lender in our network can handle your request while adhering to Minnesota rules.Accept and Receive Funds
Please review the offer. If the terms look good, you can sign electronically. Once the transaction is finalized, the funds will be deposited directly into your bank account.Loan Alternatives in Minnesota
Emergency Loans
Emergency loans offer quick cash for urgent expenses, from essential car repairs to immediate home fixes.
Personal Loans
Personal loans tend to have higher loan amounts and may offer installment repayment, making them suitable for broader financial needs.
Installment Loans
Installment loans let you repay in scheduled increments, giving you predictable monthly or bi-weekly bills.
Bad Credit Loans
Bad credit loans can help those with lower scores access funds. Repaying on time may also strengthen your credit history.
FAQ
Are Short-Term Loans Legal in Minnesota?
Yes. Minnesota permits payday and other small loans, capped at $350 with a tiered fee system. Lenders must follow Minn. Stat. §47.60.
What are the Requirements for Requesting a Short-Term Loan?
Essential criteria often include:
- Being at least 18 years old
- U.S. citizenship or permanent MN residency
- A valid Social Security number
- Steady income source
- An active checking account
Which Cities in Minnesota Have Short-Term Lending?
Online options are available statewide. Larger cities like Minneapolis, St. Paul, Duluth, and Rochester may also have physical lending locations. The digital approach streamlines the process no matter where you are.
How Does Minnesota Compare to Other States?
While some states impose strict APR caps or ban payday loans, Minnesota allows them with a $350 max principal and a tiered fee structure to keep costs transparent for borrowers.
Is a Payday Loan Different from a Cash Advance?
Cash advances generally refer to credit card withdrawals or employer-based paycheck advances. In Minnesota, payday loans are short-term financial products with statutory fee rules and a $350 limit.
Are Guaranteed Short-Term Loans Available in Minnesota?
No. Real lenders review your financial details. “Guaranteed funding without checks may not comply with Minnesota’s consumer protection regulations.