What a payday loan costs — before South Dakota’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 South Dakota
- Rate cap
- 36% all-in cap (interest + fees) on money-lender loans under Initiated Measure 21 (2016), replacing rates that had reached 574%+.
- Key law
- South Dakota Initiated Measure 21 (2016), passed ~76%, amending SDCL ch. 54-4.
- Enforcement
- The SD Division of Banking administers the cap. No completed tribal AG judgment verified.
IM 21 (2016, 76% yes) cut South Dakota payday APRs from ~574% to a hard 36% — yet the state remains home base for several reservation-based online lenders.
What it means for a South Dakota borrower
Non-tribal payday lending was wiped out because 36% all-in is unprofitable for the model. But tribal lenders based on SD reservations (Rosebud, Crow Creek, Oglala Sioux) assert sovereignty to lend nationwide — while excluding SD residents.
If you already have a payday loan in South Dakota
A loan that violates South Dakota’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.
- Complain to the SD Division of Banking.
- A non-tribal money-lender loan above 36% all-in is unenforceable.
Cheaper first — try these before a payday loan in South Dakota
Payday Loans and tribal lenders in South Dakota
Many online lenders that market payday loans to South Dakota 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 South Dakota residents and how state law applies to them, see the South Dakota tribal-lending page.
Tribal loans in South Dakota →Frequently asked questions
Does an online or tribal lender have to follow South Dakota's payday loan rules?
South Dakota applies its rules to loans made to its residents, wherever the lender sits. Tribal lenders argue that sovereign immunity puts them outside state rate caps — an argument courts have accepted in some cases and rejected in others. For which tribal brands lend to South Dakota residents and how the state treats them, see the South Dakota tribal-loan page.
What can I do about a payday loan I already have in South Dakota?
Because South Dakota restricts high-cost payday loans, a loan that exceeds the state limit may be partly or fully uncollectible — so find out before you pay a collector anything more. The steps on this page start with the lender's license. This is general information, not legal advice.