State rules

South Dakota lending rules

South Dakota has 309 Census places covered on EmergencyLoaning, with a combined estimated population of 663,824. Emergency-loan terms in South Dakota are set by licensed lenders under state law; the sourced rules below apply to every borrower in the state.

Advertising disclosure: EmergencyLoaning may receive a referral fee if you apply through the link above. That fee does not change the rate you are offered, and it does not change our content. We are not a lender. The lowest rates are only available to the most qualified applicants. Read the full disclosure.

  • Sourced figures
  • As-of dates shown
  • Not advice

By the EmergencyLoaning Editorial Team · Last updated 2026-09-16

Key rules for borrowers in South Dakota

RuleDetailSource
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.

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Advertising disclosure: EmergencyLoaning may receive a referral fee if you apply through the link above. That fee does not change the rate you are offered, and it does not change our content. We are not a lender. The lowest rates are only available to the most qualified applicants. Read the full disclosure.

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.

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