South Dakota Payday Loans

South Dakota is one of the states that allows payday loans, which are short-term loans that are typically due on your next payday. However, there are some rules and regulations that apply to payday lenders and borrowers in South Dakota.

According to the South Dakota Codified Laws 54-4-36 et seq., the maximum loan amount that a payday lender can offer is $500. The loan term can be up to 31 days, but there is no minimum term. The finance charge for a 14-day $100 loan is $1.39, which means the annual percentage rate (APR) is 36%. This is the maximum interest rate that a payday lender can charge in South Dakota.

Payday lenders in South Dakota must be licensed by the Division of Banking and must comply with the state laws regarding payday lending. They must also disclose all the fees and charges associated with the loan before the borrower signs the agreement. Payday lenders cannot charge any additional fees for extending or renewing the loan, unless they are authorized by the borrower in writing.

Borrowers in South Dakota have some rights and protections when it comes to payday loans. They can cancel the loan within one business day after receiving it, without paying any fees. They can also repay the loan early without any penalty. If they cannot repay the loan on time, they can request an extended payment plan from the lender, which allows them to pay off the loan in four equal installments over a period of 60 days.

Payday loans can be a convenient option for people who need quick cash for emergencies or unexpected expenses. However, they can also be very costly and risky, especially if they are not repaid on time. Borrowers should consider other alternatives before taking out a payday loan, such as asking for help from family or friends, seeking financial assistance from local organizations, or applying for a personal loan from a bank or credit union.

If you are looking for a payday loan in South Dakota, you can compare different lenders online or visit a local store near you. You can also read customer reviews and ratings to see how other borrowers have experienced their services. Before you apply for a payday loan, make sure you understand the terms and conditions of the loan, and only borrow what you can afford to repay.