Loan Rates and Fees in South Dakota

South Dakota caps the total cost of all consumer loans - including short-term and payday loans - at 36% APR (labeled "finance charge" on your agreement), covering interest and every fee combined. Because the 36% APR cap effectively ended traditional high-cost payday lending, very few short-term single-payment lenders remain licensed in the state - confirm any lender is licensed before you borrow.

On a $300 loan due in 14 days, the maximum finance charge at 36% APR is approximately $4.14, making your total repayment roughly $304.14; your agreement will show approximately 36% APR because that is the state cap and the federally required disclosure figure.

• Rollovers: the 36% APR cap applies to any extended or rolled-over balance; a lender cannot add a fee that pushes the all-in cost above 36% APR.
• Returned payment fee (labeled "returned check fee" or "NSF fee" on your agreement): South Dakota law excludes returned check fees from the 36% APR calculation, so a separate fee may appear - no specific dollar cap is set by statute, so ask the lender for the exact amount before you sign.
• Database or verification fee: South Dakota does not operate a statewide payday loan database; question any "database fee" line item if you see one.

If an offer exceeds 36% APR all-in, verify with the South Dakota Division of Banking.

Licensed installment lenders in South Dakota are subject to the same 36% APR cap under SDCL Chapter 54-4; interest accrues on your remaining balance, so the dollar amount of each interest charge decreases as you pay down principal.

Origination and processing fees count toward the 36% APR cap - a lender may charge them, but the total cost including all fees cannot exceed 36% APR. On a $1,000 loan at 36% APR for 12 months with no origination fee, you'd repay approximately $1,199 total - roughly $199 in interest plus $1,000 in principal.

• Refinancing restarts interest on the new balance - compare your remaining balance to the new loan's total payments before you agree.
• Returned payment fee: same rule as payday - excluded from the 36% APR calculation with no specific dollar cap; ask the lender for the exact amount.
• Late fee: South Dakota law excludes late fees from the 36% APR calculation; no specific dollar cap is set by statute - ask the lender for the exact amount and grace period before you sign.
• Prepayment: you can pay off early and interest stops accruing on the paid balance - see the installment loans page for repayment details.

If an offer exceeds 36% APR all-in, verify with the South Dakota Division of Banking.

• Returned payment fee: no state dollar cap - ask the lender for the exact amount before you sign.
• Late fee: no state dollar cap - ask the lender for the exact amount and grace period before you sign.
• Total of payments: add up every scheduled payment to see what you'll actually pay back over the full term.
• Military borrowers: the federal Military Lending Act separately caps loans to active-duty servicemembers and dependents at 36% MAPR - confirm MLA protections if you qualify.