Installment Loans in Montana
Page last reviewed: March 31, 2026 · Reviewed for accuracy by LendUp
Are installment loans legal in Montana? Yes - Montana licenses consumer lenders under the Montana Consumer Loan Act. The state caps interest rates on consumer loans.
Servicers need a license too: In Montana, not just the company that makes the loan but also any company that collects payments on it may need a Consumer Loan license. If a new company contacts you about your loan, verify them before sending money.
How to verify: The Montana Division of Banking and Financial Institutions licenses consumer lenders through NMLS Consumer Access. Call (406) 444-2091 to confirm a lender's license. Full steps below.
To qualify:
- Credit: Most installment lenders review your credit, but approval isn't based solely on your score. Ask what type of check they'll run before you authorize it.
- Basics: You'll typically need to be 18+, have a government-issued ID, verifiable income, and an active checking account for deposit and repayment.
- Military households: If you or your dependent are covered by the Military Lending Act, your total loan cost is capped at 36% per year (called the Military Annual Percentage Rate), which may limit available offers.
LendUp isn't a lender - we connect you with providers. Offers aren't guaranteed, and we may earn compensation if a loan is funded.
How to Apply
Steps
- Submit one request through LendUp or contact a licensed lender directly.
- Gather what you'll need: government-issued ID, proof of income (pay stubs, benefit letters, or bank statements), and your bank account details for deposit and repayment.
- Review the offer: confirm the APR, the full payment schedule, and the total amount you'll repay over the life of the loan.
- Verify the lender holds an active Montana Consumer Loan license through NMLS Consumer Access before you sign. Save a copy of the signed agreement.
What to expect
- Credit check: You may see a soft check (no score impact) for prequalification and a hard check (small score impact) if you accept. Ask before you agree.
- Fewer high-cost options: Montana's rate cap significantly reduced the number of high-cost lenders operating in the state. Most installment loan offers you'll see come from licensed consumer lenders or banks and credit unions. If you're offered a rate that seems unusually high, verify the lender's license before proceeding.
- Total cost vs. monthly payment: Ask for the total you'll repay over the full term. Fees, origination charges, and other costs must be factored into the total. Compare across at least two offers.
- Automatic payments: Most installment loans use automatic withdrawals. If your paydays don't match the due dates, ask whether the lender can adjust the schedule to avoid overdraft fees.
Verify an Installment Lender in Montana
Before sharing your Social Security number or bank details, confirm the lender holds an active Consumer Loan license from the Montana Division of Banking.
- Go to NMLS Consumer Access. Search by the company's NMLS number or legal name.
- Confirm Montana is listed under State Licenses with a Consumer Loan license and that the lender is authorized to conduct business.
- Confirm the company name on the license matches the name on your loan documents.
- If you can't find the lender, call the Division of Banking at (406) 444-2091 before you proceed.
If a lender can't be verified, stop and contact the Division of Banking before paying or sharing more information. Montana's rate cap drove most high-cost lenders out of the state - an unlicensed online lender offering rates above the cap may be operating illegally.
To file a complaint, download the complaint form from the Division of Banking website and submit it in writing - the Division does not accept oral complaints. You can also file with the CFPB.
LendUp works to present offers from providers that meet our marketplace requirements, but you should always verify the lender's current Montana license before accepting any offer.
Before You Sign
Your rights in Montana
- Rate cap protects you: Montana caps interest rates on consumer loans made by licensed lenders. Banks, credit unions, and certain other financial institutions are generally exempt from the Consumer Loan Act. If a non-bank lender quotes you a rate that seems high, check it against the state cap on our rates and fees page.
- Servicer licensing required: If a different company takes over servicing your loan, that company is required to hold a Montana Consumer Loan license to collect on loans originated under the Act. If a new company contacts you about your loan, verify their license before sending payment.
- Keep records: The Division of Banking only accepts complaints in writing, so keep copies of your loan contract, payment records, and any correspondence with the lender from the start. If you need to file later, you'll need documentation.
Walk away if
- An upfront fee is required before you receive any money.
- The lender shows only the monthly payment and won't state the total you'll repay in writing.
- You're pressured to sign immediately or told you can't review the agreement on your own time.
- The lender can't be found in NMLS Consumer Access with an active Montana Consumer Loan license.
- The APR seems unusually high for Montana - the state's rate cap eliminated most high-cost lending. Verify the lender's license before proceeding.
- The lender describes the product as a "payday loan" or "cash advance" - most high-cost short-term lenders left Montana after the rate cap passed.
If payments look tight, review red flags on scams and safety.
Installment Loan Questions in Montana
Are payday loans legal in Montana?
Technically yes, but Montana's voter-approved rate cap effectively eliminated most payday lending in the state. After voters approved Initiative 164 in 2010, most high-cost short-term lenders stopped operating in Montana because the cap made their business model unworkable. A small number of licensed deferred deposit lenders remain, but they are required to comply with the rate cap. If you're offered a short-term loan at a rate that seems high, verify the lender's license and check the rate against state limits.
Which lenders are exempt from the Consumer Loan Act?
Banks, building and loan associations, savings and loan associations, trust companies, and credit unions are generally exempt from the Montana Consumer Loan Act. For loans from these institutions, rates may be set by the loan agreement rather than the Consumer Loan Act's cap. Always ask which rules apply to your specific loan.
What happens if I miss a payment?
Your contract specifies the late-charge and default terms. If you can't repay, see what to do if you can't repay and contact your lender right away to discuss options before the account goes to collections.
Can open-end credit lines be made under the Consumer Loan Act?
Yes. The Division of Banking has confirmed that open-end loans are subject to the Montana Consumer Loan Act if they meet the definition of a consumer loan. This means a revolving line of credit from a licensed consumer lender is subject to the same rate limits and rules as a closed-end installment loan. If a lender offers you a line of credit, ask how the rate cap applies.
What if a different company starts collecting my loan?
In Montana, servicers of loans originated under the Consumer Loan Act are required to be licensed under the Act. If a new company contacts you about payments, verify their Consumer Loan license in NMLS before sending money. This rule applies only to loans originated under the Act - it does not apply to loans originated by banks or credit unions.
How do I verify a lender is licensed?
Use NMLS Consumer Access and search by the company's NMLS number or legal name. Confirm Montana is listed with a Consumer Loan license. If you can't find the lender, call the Division of Banking at (406) 444-2091.
Can a lender threaten arrest if I don't pay?
No. Missed loan payments are a civil matter, not criminal. If a lender or collector threatens arrest, report it to the Division of Banking, the CFPB, and the Montana Attorney General.
Where do I file a complaint?
Download the complaint form from the Division of Banking website and submit it in writing by mail, email, or fax. The Division does not accept oral complaints. You can also file with the CFPB or the Montana Attorney General's Office.
Official Sources and Update Notes
This page provides general information, not legal advice. Rules can change; confirm current requirements with the Montana regulator before acting.
Montana regulator: Division of Banking and Financial Institutions
Consumer loan licensing: Division of Banking - Consumer Loan
Deferred deposit (payday) licensing: Division of Banking - Deferred Deposit Loan
FAQs from the Division: Division of Banking - FAQs
License verification: NMLS Consumer Access
Consumer hotline: (406) 444-2091
File a complaint: Written form required - download from Division of Banking website. Also: CFPB
Montana Consumer Loan Act: Mont. Code Ann. § 32-5-101 et seq.
For statewide rules and context, go back to the Montana lending guide or browse all states in the state directory.