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Rates and rules

Minnesota Loan Rates and Rules

Who regulates consumer lending in Minnesota, how rates are set, and how to check a lender and its rate before you borrow. For new requests SET Financial is not the lender: it connects Minnesota residents with third-party lenders who set all rates and terms.

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This page is general information, not a rate quote. Not everyone who applies will be matched or approved.

Who regulates consumer lending in Minnesota

Consumer lenders that make loans to Minnesota residents are regulated by the Minnesota Department of Commerce. Under a 2023 state law effective January 1, 2024, consumer small loans and short-term (payday) loans carry an all-in APR cap of 36 percent that includes fees and charges (Minn. Stat. 47.60 and 47.601). Larger consumer installment loans are made by regulated loan companies licensed under the Minnesota Regulated Loan Act (Minn. Stat. ch. 56), which sets the permitted rate and fee structure. SET Financial does not set rates or terms. Each lender discloses its own APR, fees, and repayment schedule in the loan agreement.

Regulator: Minnesota Department of Commerce, Financial Institutions Division.

How to check a lender before you borrow

Before you sign, confirm the lender is licensed with the Minnesota Department of Commerce and read the APR, fees, and total repayment amount stated in your loan agreement.

Many consumer lenders are also listed on NMLS Consumer Access, a national database you can search for free to confirm a company's license status and history.

Search NMLS Consumer Access

The four numbers to compare on any offer

A regulator's rules tell you about the lender. These tell you about the loan. Whoever you borrow from, and whether or not you use this site, compare offers on the same four things:

  • APR. The annualized cost including most fees. It is the only number that lets you compare two different loans honestly.
  • Total repayment amount. Principal plus every finance charge over the full term. A lower monthly payment stretched longer often costs more overall.
  • Term and payment schedule. How many payments, how often, and the exact due dates measured against when you actually get paid.
  • Fees and prepayment terms. Origination, late, and returned-payment fees, and whether paying the loan off early saves you interest.

Your loan agreement is the number that governs

Federal Truth in Lending rules require the lender to disclose the APR, finance charge, amount financed, and total of payments on the loan agreement before you sign. Any rate you see in marketing, including on this site, is general information. The figures on your own signed agreement are what actually apply to your loan.

Common questions about Minnesota rates

Who regulates consumer loans in Minnesota?

Consumer lenders that make loans to Minnesota residents are regulated by the Minnesota Department of Commerce, Financial Institutions Division. You can confirm a lender's license status through the Department of Commerce.

What are the interest rate rules in Minnesota?

Under a 2023 law effective January 1, 2024, Minnesota caps the all-in APR on consumer small loans and short-term (payday) loans at 36 percent, including fees (Minn. Stat. 47.60 and 47.601). Larger installment loans made by regulated loan companies follow the rate structure in the Minnesota Regulated Loan Act (ch. 56). Your lender discloses the exact APR in your agreement.

How much will my loan cost?

SET Financial does not set rates, fees, or terms. Each third-party lender sets its own pricing within Minnesota law. Always review the APR, fees, and total repayment amount in the loan agreement before you sign.

This page is general information about Minnesota lending rules, not legal or financial advice, and it is not a rate quote. Rules change; confirm anything that matters to your situation with the Minnesota Department of Commerce, Financial Institutions Division or a qualified advisor. SET Financial is not the lender on new requests and does not set the rates, fees, terms, or approval decisions of the third-party lenders in its network.

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