SD state reference
South Dakota lending rules
South Dakota has 309 Census places covered on Personalloaned, with a combined estimated population of 663,824. Personal-loan terms in South Dakota are set by licensed lenders under state law; the sourced rules below apply to every borrower in the state.
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- 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).
- Payday lending 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.
- State regulator South Dakota Division of Banking (Department of Labor and Regulation)
Sourced rules
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 |
Cities in South Dakota
We cover 309 Census places in South Dakota. The count and the combined population figures are summed from the US Census Bureau's Vintage 2023 subcounty population estimates (retrieved 2026-09-17).
Common questions
Frequently asked questions
What interest rate can a lender charge in South Dakota?
It depends on the product and the statute that governs it. The sourced table on this page lists South Dakota's usury cap and the licensing rules, each with its publisher and a link to the primary source.
Are payday loans legal in South Dakota?
Payday lending is regulated state by state; some states permit it, some cap it, and some prohibit it outright. See the sourced figure on this page for the current position.
Do I need a license to lend money in South Dakota?
Most consumer lenders must be licensed by the state regulator named on this page. You can verify a lender's license with that regulator before you sign anything.