Midwest · 36% APR cap
Payday loans in South Dakota
South Dakota does not license classic two-week payday pricing: a 36% APR cap keeps typical payday fees out of the market. The storefronts that remain sell installment products under that cap.
Classic payday pricing is not licensed here, so treat any two-week, high-fee offer as a red flag.
The rules behind the numbers
Payday loans and small loans in South Dakota are subject to a maximum 36% annual percentage rate cap under Initiated Measure 21.
Statute: S.D. Codified Laws § 54-4-36 et seq.
Regulator: South Dakota Division of Banking · dlr.sd.gov
Questions people ask here
Why can't I find two-week payday stores in South Dakota?
South Dakota caps small-loan APR at 36%. At that rate a two-week $300 loan earns a lender about $4 — which is why classic payday pricing can't legally exist here. Storefronts that remain offer installment loans under the cap.
What can I legally borrow instead in South Dakota?
Installment loans priced under the 36% cap, federal credit-union PAY loans, and employer advance programs are the lawful routes. Anything advertising "no credit check" two-week fees is not licensed here.
A lender offered me a payday loan online anyway. Is that legal?
Not for a South Dakota resident. The 36% cap applies regardless of where the lender is based — that offer is illegal in this state, and worth reporting.
Who enforces the cap in South Dakota?
Complaints about a licensed lender go to the South Dakota Division of Banking (dlr.sd.gov) — keep the loan agreement and every fee disclosure you were given.
6 storefront lender locations listed statewide in the 2022-02-20 public directory snapshot — each city guide carries its local list.