Loan Options in South Dakota

South Dakota voters passed Initiated Measure 21 in November 2016, capping annual interest at 36% APR for licensed money lenders. That cap is now part of SDCL Title 54, Chapter 4 and covers both payday-style and installment loans from non-bank lenders.

Both products are legal, but lenders need a money-lending license from the South Dakota Division of Banking and must stay under the 36% cap. For product details and fee breakdowns, see the payday loans, installment loans, and rates & fees pages. If you want lower-cost options, start with alternatives in South Dakota.

• 36% APR cap (Initiated Measure 21) - Licensed money lenders can't charge more than 36% annual interest, including most fees. You're shielded from the triple-digit rates you'll find in other states.
• Licensing requirement - Any non-bank making consumer loans needs a license from the Division of Banking. Check their license before you share personal information.
• Written disclosure before you sign - State and federal law (Truth in Lending Act) require lenders to show you the APR, finance charges, total repayment amount, and payment schedule in writing.
• Complaint process - If a lender breaks state law, you can file a complaint with the Division of Banking. They investigate and can take enforcement action against licensees.

Before you share personal information, verify the company's license through the Division of Banking licensee search and review the LendUp scams & safety guide.