What Is the Largest Loan Amount in South Dakota?
The largest payday loan amount allowed in South Dakota is $500.
Loan Costs Regulations in South Dakota
For every $100 loan for 2 weeks, the maximum cost is $1.39. Also according to Initiated Measure 21, “No licensee may contract for or receive finance charges pursuant to a loan in excess of an annual rate of 36 percent, including all charges for any ancillary product or service and any other charge or fee incident to the extension of credit. A violation of this section is a Class 1 misdemeanor. Any loan made in violation of this section is void and uncollectible as to any principal, fee, interest, or charge.”
Cost Calculation For a $100 Payday Loan in South Dakota
If the term is 14 days:
Loan cost: $100 * 36% * (14 / 365) = $1.4
Total amount to return: $100 + $1.4 = $101.4
How Is the Loan Term Regulated in South Dakota?
The minimum term is 13 days. The law doesn’t set out a maximum term.
What If a Borrower Requests an Extended Payment Plan
The lender can either approve this request without imposing any fees or simply deny it.
According to rule changes by the Consumer Financial Protection Bureau, starting from July 2020, lenders are not obligated to check whether a borrower is able to pay back a loan. Think carefully before you decide to borrow a payday loan, and manage your money spending reasonably to avoid debt trap.
- The number of rollovers allowed is 4.
- No criminal action against borrowers is allowed.
To know more about the rules governing payday lending in South Dakota, go to the South Dakota Division of Banking website.