Minnesota is an upper midwestern state and has a population of around 5,489,594. These days, payday loans are becoming very attractive to borrowers who are experiencing financial troubles. Every state has its own regulations regarding payday loans, so if you are thinking of requesting one in Minnesota, it is best that you know the Minnesota payday loans laws.
Payday loans laws
Payday lending in Minnesota is legal and lending companies can legally run their companies according to Minn. Stat. § 47.60 et seq.
According to the states legislation, payday loan lenders can’t give out loans surpassing the amount of $350. Since payday loans are short-term loans by nature, the maximum payday loan period in Minnesota is 30 days.
Minnesota payday loans laws strictly forbid lenders from harassing their clients, although that does not mean that lenders can’t file criminal charges against you if you fail to repay your loan.
However, cases of filing criminal charges are really rare. With the payday loan lending industry growing more each year, the number of payday loan lending companies also increases.
In Minnesota, like in most states in America, you can apply for a payday loan by visiting a lender’s on-ground store or by just visiting one online. Research showed that payday loans are among the most popular online searches in Minnesota.
To learn more about loans or to avail Minnesota payday loan, check it here.
Why a payday loan could help you
Payday loans are one of the most popular type of short-term loans. There are a few reasons why that is so:
They are faster than most other types of loans
When you are in trouble and you need immediate cash to take care of your bills, you can’t afford to wait for weeks to get it. With payday loans, you could get money ASAP or the next day if you’ve applied for your loan online.
They are everywhere
Fact is, you will probably find a payday lender’s store near your workplace or your home. You also have the option to get a payday loan online at any hour of the day.
You can use your money in any way you want
When you acquire loans from traditional lenders you are not really free to do whatever you want with your money as there are certain spending limitations stated in your loan contract. With payday loans, the money you get can be used for whatever you want just making sure it’s legal.
Don’t worry about credit score
When you get payday loans, having a good or bad credit score is irrelevant. What lenders are interested in is if you can manage repaying the loan by your next paycheck.
Minnesota Payday loans fees and charges
If you are considering taking a payday loan, these are crucial information you have to know:
In Minnesota the percentage rate for a payday loan each year can’t be more than 390%.
Charges and fees
The charges and fees may vary depending on the amount of money you are borrowing:
- The charge for a $50 loan can be up to $5.50
- If your loan amount is somewhere between $50 and $100, you can be charged with an administrative fee of $5 and a fee of up to 10% of your loan amount.
- If your loan amount is somewhere between $100 and $250, you may be charged with $5 administrative fees and up to 7% of the amount borrowed.
- If you your loan exceeds $250, you can be charged with $5 administrative fee plus up to 6% of the loan amount. That is with a minimum of $17.50.
If payments get rejected, you’ll most likely be obliged to pay a NSF fee of $30.
Additional interest charge limit after default
Even though rollovers are forbidden by the Minnesota payday loans laws, lending companies may charge additional interest of up to 2.75% per month on that loan.
AAccording to Minnesota payday loans laws, payday loan lending companies can’t try to renew any loan case of lack of payment of the debt.
Who is eligible for a payday loan and how to apply for one
Despite being very fast and easy to obtain, payday loans do have some requirements that you should meet:
- To get a payday loan you must be older than 17 years
- You need to have a stable salary
- You should be a permanent resident of America or a citizen of the country.
For the application to be very successful, have these information at hand:
- The day, month, and year your were born, your full name, and the details for your social security
- The address of your home along with your email and your contact number
- Details for your income and job
Cities in Minnesota where you can acquire lenders for a payday loan:
- Blue Earth
- Cass Lake
- Columbia Hts
- Cottage Grove
- Detroit Lakes
- Dodge Center
- Eden Prairie
- Elk River
- Forest Lake
- Grand Rapids
- Inver Grove
- Little Falls
- Madison Lake
- Maple Plain
- New Hope
- Prior Lake