Loans in Minnesota: payday, personal & title loan laws (2026)

Payday-type loans are legal in Minnesota but capped at a 50% all-in APR: 'consumer small loans' (single-payment loans of $350 or less, Minn. Stat. 47.60) and 'consumer short-term loans' (up to $1,300, Minn. Stat. 47.601). Any loan above 36% APR requires an ability-to-repay analysis.

A consumer small loan is $350 or less, and one borrower may not owe more than $350 in total on such loans at one time. A consumer short-term loan is $1,300 or less.

The lender may charge an annual percentage rate of up to 50%, counting all interest, finance charges and fees. No other charges are allowed. After the due date, the rate may not exceed 2.75% a month on the unpaid balance.

Car title loans are allowed in Minnesota only from lenders licensed by the Department of Commerce (industrial loan and thrift or regulated lender), and charges are limited to the pawnshop maximum of 3% a month plus a limited storage/service fee.

The title-loan statute covers loans of $1,000 or less.

Greater of 21.75% APR or 33% to $1,425/19% above; small loans 50%.

Yes. Chapter 56 regulated lenders are licensed by the Commissioner of Commerce; non-bank consumer small loan lenders must file with the Commissioner before lending.