South Dakota · checked October 24, 2026

Payday loans in South Dakota: the rules and your way out

Typical payday loans not allowed

Since voters approved Initiated Measure 21 (effective Nov. 16, 2016), licensed lenders may not charge more than 36% a year including all fees, which makes typical payday loans unlawful, and loans over the cap are void.

Law: SDCL §§ 54-4-44, 54-4-44.1, 54-4-44.3 (Initiated Measure 21, SL 2017 ch 221), 54-4-65, 54-4-66. SDCL as published by the SD Legislature, accessed 2026-10-24 (§ 54-4-44 source notes end at SL 2017, ch 205).

South Dakota's rules, line by line

Largest loan: $500 per borrower per licensee (SDCL § 54-4-66), but any loan is still subject to the 36% cap.
Fee or rate cap: No licensee may contract for or receive finance charges in excess of an annual rate of 36%, including all charges for any ancillary product or service and any other charge or fee incident to the extension of credit (SDCL § 54-4-44).
Renewals and rollovers: No more than four renewals of a short-term consumer loan; each requires paying the outstanding fee and reducing principal by at least 10% of the original amount (SDCL § 54-4-65).
Payment plan if you cannot pay: None found.
State loan database: No.
Limits on collection: A loan made in violation of the 36% cap is void and uncollectible as to any principal, fee, interest or charge (SDCL § 54-4-44). Late fees, return-check fees and attorney's fees on default are not counted toward the cap (§ 54-4-44.3).
Other rights: Evasion by any device, subterfuge or pretense, including internet lenders with no physical presence in the state, is prohibited and subject to the same penalties (SDCL § 54-4-44.1). Violation is a Class 1 misdemeanor (§ 54-4-44).

If you are behind on a payday loan in South Dakota

Check whether the loan was legal to make. South Dakota does not allow payday loans at typical payday prices. If a lender charged more than the state's limit, report it to the South Dakota Department of Labor and Regulation, Division of Banking through its complaint page.
Stop the automatic withdrawals if they are emptying your account. You can revoke the lender's permission to debit your account and tell your bank. How to do it.
Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
Talk to a nonprofit credit counselor. A counselor can look at all your bills, not just this one. How to find a real one.

Check a lender, or report one

Sources

SDCL § 54-4-44, read 2026-10-24
SDCL § 54-4-44.1, read 2026-10-24
SDCL § 54-4-65, read 2026-10-24
SDCL § 54-4-66, read 2026-10-24
SD Division of Banking, Money Lenders, read 2026-10-24
SD Division of Banking, Consumer Complaints and Resources, read 2026-10-24
SD Division of Banking, Consumer Complaint FAQ, read 2026-10-24

This page summarizes the law; it is not legal advice. Laws change, and the statute and regulator control. If something here is out of date, write to hello@paydayloan.help.