What a payday loan costs — before Nebraska’s rules
A payday loan typically costs $15–$20 per $100 borrowed for a two-week term — roughly 400% APR — and is due as a single lump sum on your next payday. That single-payment structure, not the fee on any one loan, is the trap: most fees come from borrowers who cannot clear the balance in one go and roll it over. Where a state caps rates below payday levels, licensed payday lending disappears and a loan above the cap is generally void — not legally collectible, whatever the contract says.
The law in Nebraska
- Rate cap
- 36% annual cap on payday/delayed-deposit loans under Initiative 428 (2020), replacing a prior ~404% APR fee structure.
- Key law
- Nebraska Initiative 428, Payday Lender Interest Rate Cap (2020), passed with ~83% support.
- Enforcement
- No major state AG action against tribal lenders verified; the measure survived a state Supreme Court ballot challenge.
Pre-2020 Nebraska payday APRs averaged 404%; voters cut the effective cap to 36% by an 83% landslide.
What it means for a Nebraska borrower
The 36% cap applies to lenders "regardless of whether they have a physical presence in Nebraska," so online loans over 36% are unenforceable. Storefront payday lending collapsed.
If you already have a payday loan in Nebraska
A loan that violates Nebraska’s rate limits may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- Contact the Nebraska Department of Banking and Finance.
- A payday or online loan priced above 36% APR is not collectible under state law.
Cheaper first — try these before a payday loan in Nebraska
Payday Loans and tribal lenders in Nebraska
Many online lenders that market payday loans to Nebraska residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Nebraska residents and how state law applies to them, see the Nebraska tribal-lending page.
Tribal loans in Nebraska →Frequently asked questions
Are payday loans legal in Nebraska?
In Nebraska, payday loans are legal but tightly limited. The state caps loan size, fees or rollovers, so a legal payday loan looks different — and costs less — than the ~400% APR norm, and any lender exceeding those limits is out of compliance.
What is the maximum payday loan rate in Nebraska?
36% annual cap on payday/delayed-deposit loans under Initiative 428 (2020), replacing a prior ~404% APR fee structure.
What can I do about a payday loan I already have in Nebraska?
Because Nebraska restricts high-cost payday loans, a loan that exceeds the state limit may be partly or fully uncollectible. Contact the Nebraska Department of Banking and Finance. This is general information, not legal advice.