South Dakota Payday Loans |‌ No Credit Check

South Dakota law permits payday loans. However, there are restrictions.

Payday loans in South Dakota are limited to $500. There are no restrictions regarding loan terms. Lenders cannot set rates higher than the APR of 36%. There are only four rollovers allowed. It is illegal to prosecute borrowers.

For many years, the South Dakota payday loan market was very competitive. Because there were no usury restrictions, it offered the most flexible terms.

Lenders could charge interest rates up to 36% and sometimes up to 574%. The state legislature restored a 36% limit on small cash loans in 2016.

South Dakota Payday Lending Statutes


The Initiated Measure 21 passed on November 16, 2016, and S.D. Codified Laws 54-4-336 et seq. Payday lenders are allowed to operate in the state. They must comply with state regulations.

The South Dakota Banking Department must license payday loan providers. Lenders must provide proof of surety bonds as well as the name and address of their company when applying for a license.

This is the current licensee listing. Here you can search for payday lenders.

Terms and conditions must be communicated to the borrower in writing. It should be clear and concise. South Dakota lenders are required to delay the check for a specific period, as specified in the agreement.

Loan Amounts in South Dakota

  • South Dakota’s payday loans cannot exceed 500.
  • The loan can be extended up to 4 times if all fees have been paid before renewal.

South Dakota charges

  • “No licensee can contract for or accept finance fees under a loan exceeding 36% per year.” This includes fees for products or ancillary services. This is a Class I crime. This section is a Class 1 crime. “( Initiated measure 21.
  • A $100 loan should not be subject to higher finance charges than 1.39 or extended for longer than two weeks.

Maximum Term for Payday Loans in South Dakota

  • A South Dakota loan can be used for a maximum of 13 days. There is no maximum loan term.
  • 4 Loans may be rolled over.

Consumer Information

Lenders can no longer verify borrowers’ ability to repay loans after July 2020.
Avoid falling into debt traps.
The CFPB has altered the rule.

  • Lenders are prohibited from engaging in criminal actions toward borrowers.

Visit the South Dakota Division of Banking to learn more about payday loan options in your area.

History of South Dakota Payday Loans

  • 1980 South Dakota removed its usury ceiling.
  • In the 1990s, South Dakota was the first state to offer short-term, high-interest loans such as car-title loans and payday loans. In 2000, 95 South Dakota businesses offered alternative financial services. Forty offered payday loans. South Dakota requires that payday lenders be licensed. There are no fee caps. This has been true for over 15 years.
  • 2006 Military personnel could get payday loans at an APR of 36%, according to the Military Lending Act. Federal law prohibits exceptions. South Dakota lenders are prohibited from offering loans to military personnel at rates higher than 36% APR.
  • On June 2, 2016, the Consumer Financial Protection Bureau recommended a Payday loan rule. This rule is still under construction (expected in November 2020).
  • 2016 South Dakota opted not to wait for a federal decision. Proposed is the Constitutional Amendment U. This amendment would restrict the ability to fix statutory interest rates on loans. However, it didn’t pass.
  • 2016 But, it was closely watched Initiative step 21. It was approved by 76% of voters. The Act limits payday loans to 36% per year and does not allow for loopholes.
  • 2017121 To renew their licenses, mortgage lenders left the state. Seventy-five lenders remained in the state until they could obtain loans.


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Loans Writer at | Website

Brycen Schinner works as an editor of personal finance. He holds an English literature degree from the University of Colorado Boulder. In the past as a lead editor at eBay as well as a manager of the writer's team that wrote about eBay's content team across the globe. He also wrote for Yahoo. After joining in 2013, He has covered subjects that range from personal loans and managing debt.