The state of Minnesota is an upper midwestern state and has a population of around 5,489,594. These days, payday loans are becoming more and more attractive to borrowers who are experiencing financial troubles. Every state in the US has its own regulations regarding payday loans, so if you are thinking of applying for one in the state of Minnesota, it is best that you know the Minnesota payday loans laws.
Minnesota payday loans regulations
Payday loan lending in the state of Minnesota is completely legal and lending companies can legally run their businesses 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 the state of Minnesota, like in most states of the United States, 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 amongst the most popular online searches in Minnesota.
Why taking out a payday loan in Minnesota 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 your money in just a few hours time or by the next business 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 apply for a payday loan online at any hour of the day.
You can use your money in any way you want
When you take out a loan from a traditional lending institutions, 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 as long as it is not something illegal.
Don’t worry about credit score
When you take out a payday loan, having a good or bad credit score is irrelevant. What lenders are interested in is if you can manage repaying the loan byn your next paycheck.
Payday loans fees and charges in Minnesota
If you are considering a payday loan in Minnesota, these are crucial information you have to know:
The annual percentage rate for a payday loan in Minnesota cannot 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 your payment has been rejected, you’ll most likely be obliged to pay a maximum NSF fee of $30.
Additional interest charge limit after default
Even though rollovers are forbidden by the Minnesota payday loans laws, lending companies are allowed to charge additional interest of up to 2.75% per month on that loan.
According to Minnesota payday loans laws, payday loan lending companies are not allowed to rollover or renew any loan case of nonpayment of the debt.
Who is eligible for a payday loan in Minnesota 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 be eligible for a payday loan in Minnesota you must be 18 years old or older
- You need to have a stable monthly income
- You need to be a permanent resident of the US or an American citizen
For your application to be successful, have these information at hand:
- Social security number, name and date of birth
- Phone number, home and email address
- Details regarding your employment and income
Cities in Minnesota where you can find payday loan lenders:
- 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