South Dakota lending rules
Personalloaner covers 309 Census places in South Dakota, which together hold an estimated 663,824 people. Licensed lenders set personal-loan terms here under South Dakota law, and the sourced rules below reach every borrower in the state.
Key rules for borrowers in South Dakota
| Rule | Detail | Source |
|---|---|---|
| Maximum legal interest rate (usury cap) | No general maximum/usury restriction when the rate is set by written agreement; specific caps elsewhere in the code apply (e.g., 36% for licensed money lenders). Source says: "no maximum interest rate or charge, or usury rate restriction... if they establish the interest rate or charge by written agreement" (SDCL 54-3-1.1). |
South Dakota Legislature (South Dakota Codified Laws) as of 2026-09-16 |
| Payday lending status | Legal for licensed money lenders (including payday and title lenders) but capped at 36% APR including all fees and charges; violations are a Class 1 misdemeanor and loans are void. Source says: "no licensee may contract for or receive finance charges pursuant to a loan in excess of an annual rate of thirty-six percent" (SDCL 54-4-44); "A violation of this section is a Class 1 misdemeanor. Any loan made in violation of this section is void and uncollectible" (54-4-44). |
South Dakota Legislature (South Dakota Codified Laws) as of 2026-09-16 |
| Small-loan / installment lender licensing | Money Lender license (SDCL ch. 54-4) required for anyone lending money or creating/holding/purchasing retail installment contracts; payday and title lenders are licensed as money lenders. Source says: "to be a Money Lender and subject to the licensing requirements of South Dakota Codified Laws (SDCL) Chapter 54-4"; "Payday and title lenders are also licensed as Money Lenders under SDCL Chapter 54-4." |
South Dakota Division of Banking (Department of Labor and Regulation) as of 2026-09-16 |
| State lending regulator | South Dakota Division of Banking (Department of Labor and Regulation) Source says: "The Division of Banking is charged with the regulation and supervision of state chartered and licensed financial institutions." |
South Dakota Division of Banking (Department of Labor and Regulation) as of 2026-09-16 |
| Initiated Measure 21 anti-evasion rule (state-specific rule) | Initiated Measure 21 (2016) also bars evasion by indirect means; applies to loans originated, refinanced, rolled over, renewed or flipped after November 15, 2016. Source says: "prohibits these money lenders from evading this rate limitation by indirect means... a loan made in violation of this measure is void" (Division of Banking guidance on Initiated Measure 21). |
South Dakota Division of Banking (Department of Labor and Regulation) as of 2026-09-16 |
Places we cover in South Dakota
The Census Bureau counts 309 places in South Dakota, and the largest are linked below.
Common questions
How high can interest rates legally go in South Dakota?
The answer turns on the product and on which statute applies to it. This page's table sets out South Dakota's usury cap and licensing rules, and each row carries its publisher and a link to the primary source.
What is South Dakota'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 South Dakota's current position.
How do I know a lender is licensed in South Dakota?
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.