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Rates and rules

Montana Loan Rates and Rules

Who regulates consumer lending in Montana, 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 Montana 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 Montana

Consumer lenders in Montana are regulated by the Montana Division of Banking and Financial Institutions, which licenses consumer loan companies under the Montana Consumer Loan Act (Title 32, Chapter 5, MCA), with licensing handled through the Nationwide Multistate Licensing System (NMLS). In 2010, Montana voters approved Initiative I-164, which took effect January 1, 2011 and caps the annual rate on consumer loans, deferred deposit (payday) loans, title loans, and retail installment sales contracts at 36 percent APR. SET Financial does not lend or set rates. Your actual APR and terms are determined by the third-party lender that reviews your application.

Regulator: Montana Division of Banking and Financial Institutions (Montana Department of Administration).

How to check a lender before you borrow

Before you sign, confirm the lender holds an active Montana consumer loan license through NMLS or the Division of Banking and Financial Institutions, and review the exact APR, fees, and payment schedule written 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 Montana rates

What is the maximum interest rate on a consumer loan in Montana?

Under Initiative I-164, approved by Montana voters in 2010 and effective January 1, 2011, consumer loans, payday loans, title loans, and retail installment contracts are capped at 36 percent APR. Your specific rate within the law is set by the lender.

Who regulates consumer lenders in Montana?

The Montana Division of Banking and Financial Institutions, part of the Montana Department of Administration, licenses and oversees consumer loan companies under the Montana Consumer Loan Act. Licensing is processed through NMLS.

How do I verify a Montana lender is licensed?

Check the lender's license status through the Nationwide Multistate Licensing System (NMLS) or contact the Montana Division of Banking and Financial Institutions, and always confirm the APR, fees, and payment schedule in your written loan agreement before signing.

This page is general information about Montana 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 Montana Division of Banking and Financial Institutions (Montana Department of Administration) 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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