Personalloaner

Minnesota lending rules

Personalloaner covers 853 Census places in Minnesota, which together hold an estimated 4,779,276 people. Licensed lenders set personal-loan terms here under Minnesota law, and the sourced rules below reach every borrower in the state.

By the Personalloaner Editorial Team · Last updated 2026-09-16

Compare loan offers Run the numbers first

How we get paid: if you apply through the link above, a lending partner may send us a referral fee. It never changes the rate you are offered or what we publish. We are not a lender and we do not process applications. The lowest rates are only available to the most qualified applicants. Full disclosure.

Key rules for borrowers in Minnesota

RuleDetailSource
Maximum legal interest rate (usury cap) 6% per year legal rate of interest; a different rate may be contracted for in writing (Minn. Stat. § 334.01)
Source says: "The interest for any legal indebtedness shall be at the rate of $6 upon $100 for a year"		 Minnesota Legislature, Office of the Revisor of Statutes
as of 2026-09-16
Payday lending status Legal and licensed; APR capped at 36%, or up to 50% with an ability-to-repay analysis (Minn. Stat. §§ 47.60, 47.601, 47.603)
Source says: "The cap on that annual percentage rate is set at either 36%, or up to 50% if the lender conducts an ability to repay analysis"		 Minnesota Department of Commerce
as of 2026-09-16
Small-loan / installment lender licensing Regulated loan license required from the commissioner for loans within the Chapter 56 threshold (Minn. Stat. § 56.01)
Source says: "without first obtaining a license from the commissioner, no person shall engage in the business of making loans of money"		 Minnesota Legislature, Office of the Revisor of Statutes
as of 2026-09-16
State lending regulator Minnesota Department of Commerce (commissioner of commerce)
Source says: ""Commissioner" means the commissioner of commerce"		 Minnesota Legislature, Office of the Revisor of Statutes
as of 2026-09-16
Payday ability-to-repay requirement Required for payday loans with an APR above 36% (Minn. Stat. § 47.603)
Source says: "This section applies to all payday loans with an annual percentage rate that exceeds 36 percent."		 Minnesota Legislature, Office of the Revisor of Statutes
as of 2026-09-16

Places we cover in Minnesota

The Census Bureau counts 853 places in Minnesota, and the largest are linked below.

Compare personal loan offers Run the numbers first

How we get paid: if you apply through the link above, a lending partner may send us a referral fee. It never changes the rate you are offered or what we publish. We are not a lender and we do not process applications. The lowest rates are only available to the most qualified applicants. Full disclosure.

Common questions

How high can interest rates legally go in Minnesota?
The answer turns on the product and on which statute applies to it. This page's table sets out Minnesota's usury cap and licensing rules, and each row carries its publisher and a link to the primary source.
What is Minnesota's position on payday lending?
Each state handles payday lending on its own: some permit it, some cap it, some prohibit it. The sourced row on this page gives Minnesota's current position.
How do I know a lender is licensed in Minnesota?
Consumer lenders generally need a licence issued by the state regulator identified on this page. Verify that licence with the regulator before you commit to anything.

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