South Dakota Payday Loan Laws and Regulations

Find out if short-term Payday Loans are legal in South Dakota and what amounts, interest rates and repayment terms are set by the state's Legislation.

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South Dakota Payday Loans Rates and Terms

Legal Status

Legal Status

The status of a loan type according to the Federal laws and regulations. What concerns Payday Loans some states consider them legal, some – illegal and some restrict them in terms of amounts and interest rates.

Maximum Loan Amount

Maximum Loan Amount

It’s the maximum sum of cash advance allowed to apply for in the state. It usually ranges from $500 to $1000. But it may vary depending on the lender and his requirements.

Finance Charges

Finance Charges

All the payments you’re going to be charged for the loan including APR and other fees.

$1.39 for a $100 loan given for 2 weeks

You must have heard that Payday Loans are prohibited in South Dakota, you may find other options to get instant cash advance permitted by the state's laws. Study the rules and regulations concerning short-term loans in South Dakota. Find available alternatives. 

Table of Contents:

Are Payday Loans legal in South Dakota?

Why are Payday Loans illegal in South Dakota?

South Dakota Payday Loans Laws

South Dakota Payday Loans online laws

Does South Dakota law allow Payday Loans for bad credit borrowers?

South Dakota Payday Loans news  - latest changes

South Dakota Payday Loans historical background

South Dakota Payday Loan alternatives

Are Payday Loans legal in South Dakota?

Short-term Payday Loans in South Dakota are illegal according to  S.D. Codified Laws 54-4-36 et seq.. These documents also cap the APR at 12%.

Remember that regardless of this, there are other loan options available to cover your urgent expenses fast such as Installment Loans in South Dakota and Personal Loans in South Dakota.

Read more: Payday Loans in South Dakota

As we can see, South Dakota Division of Banking, 1601 N. Harrison Ave., Suite 1 Pierre, SD 57501, (605) 773-3421 caps all short-term loans at South Dakota Division of Banking, 1601 N. Harrison Ave., Suite 1 Pierre, SD 57501, (605) 773-3421 APR. 

For other details  and information on Payday Loans in South Dakota contact South Dakota Division of Banking, 1601 N. Harrison Ave., Suite 1 Pierre, SD 57501, (605) 773-3421.

Why are Payday Loans illegal in South Dakota? 

The Government considers Payday Loans too expensive and often associated with lenders' predatory practices. That's why in South Dakota Payday Loans are illegal according to  S.D. Codified Laws 54-4-36 et seq. which caps the APR at .

It caused most lenders stop issuing short-term small-dollar loans as it became not profitable. Still, there still exist some banks and online companies offering similar types of cash advance suitable to cover any unexpected emergencies.

South Dakota Payday Loan laws 

Payday Loans in South Dakota share the same characteristics as short-term cash advances in other states but due to high cost and short repayment terms they are prohibited in South Dakota. Lenders can't legally operate because of the rate cap set by the authorities. But we can let you compare other options available in South Dakota.

If you haven't succeeded in finding the necessary cash advance, there are always other options to receive the necessary funds in South Dakota: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.

South Dakota Payday Loans online laws 

Usually, the state's Payday Loan laws concern both storefront and online lenders. Online lenders should also operate in accordance with all relevant state and federal laws. Otherwise, they may be liable to South Dakota Division of Banking, 1601 N. Harrison Ave., Suite 1 Pierre, SD 57501, (605) 773-3421 for law violations. 

For years, the Attorney General’s office has worked hard to eliminate all forms of payday lending in South Dakota. However, not all the efforts were successful as usurious loans are still available online (regardless of the fact that storefront payday lenders are no longer available in South Dakota).

Does South Dakota law allow Payday Loans for bad credit borrowers? 

The average credit score in South Dakota is 700, placing it in the good range. But it doesn't mean that those who have a worse credit can't apply for the necessary cash advance in South Dakota. 

  • First of all, there're some companies in South Dakota providing similar to Payday loans services to borrowers with both good and bad credit score.
  • Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
  • Find out how to improve your credit score and do your best to do it fast. 
  • Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.

South Dakota Payday Loans news  - latest changes

Payday Loans in SD have always been capped by the interest rate of 36%. But lately, the Federal Deposit Insurance Corporation has attempted to change the situation with quick small loans. They reconsider the way banks handle loans.

The new rule would allow banks to repackage loans as innovation and thus bring back the payday loan industry.

“At stake are so-called “rent-a-bank” schemes, in which banks heavily regulated by federal agencies like the FDIC enter into relationships with largely unregulated non-bank entities for the principal purpose of allowing non-banks to evade state usury laws,” the AGs said in a letter sent earlier this month.

South Dakota Payday Loans historical background 

Payday Loans have always been prohibited in South Dakota as there is no law making them legal.

South Dakota Payday Loan alternatives 

If you're looking for instant cash advance in South Dakota but not a Payday Loan, consider other alternative ways to get the necessary funds:

  • Apply for an Installment Loan - $1000 - $5000 cash advance repaid over several months or years in equal installments.
  • Sell some of your valuable stuff online or at a pawn-shop.
  • Apply for South Dakota Tribal loans. Tribal lenders can avoid the state's caps and limits as they operate outside the state regulations. 
  • Consider borrowing from a bank or credit union. 
  • Qualify for one of Federal or South Dakota state government assistance programs. 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.