Compare legal limits, fees and the true cost of small loans in your state before you talk to any lender. Compare legal limits, fees and the true cost of small loans in your state.
North Dakota Loan Rules
Every small-dollar loan rule that applies to borrowers in North Dakota is set by state statute and enforced by ND Dept of Fin. Inst. across storefront and online lenders. Short-term deferred presentment transactions—commonly known as payday loans—are legal and regulated under the North Dakota Deferred Presentment Act, and borrowers must be at least 18 years old. State law sets the maximum payday loan at $500. Licensed lenders in North Dakota may issue payday loans in amounts from $100 up to $500. Permitted repayment terms run up to 60 days, and specific rules on rollovers, simultaneous loans, and your right to cancel (rescission) appear in the payday table below. State law caps payday finance charges at 20% of amount advanced. A typical payday loan in North Dakota carries an annual percentage rate of ~521%.
Fixed-payment installment loans in North Dakota are governed separately under the North Dakota Money Brokers Act, which regulates multi-month loans repaid in scheduled installments. As shown in the installment table below, the maximum all-in APR is 36% on a $500 six-month loan, 36% on a $2,000 two-year loan, and 36% on a $10,000 five-year loan. Online lenders making small loans to North Dakota residents generally must hold a license from ND Dept of Fin. Inst. and follow these statutory limits. Before borrowing, you can compare lower-cost regulated alternatives such as credit union Payday Alternative Loans (PALs), which cap rates at 28% APR for loans from $200 to $2,000, and explore our detailed North Dakota guides and lender directories linked on this page.
Payday loan rules in North Dakota
| Legal status | Allowed (licensed lenders) |
|---|---|
| Governing law | North Dakota Deferred Presentment Act |
| Maximum loan amount | $500 |
| Loan term | Up to 60 days |
| Fee or rate cap | 20% of amount advanced |
| Maximum finance charge | $100 |
| Typical APR or rate cap | ~521% |
| Rollovers allowed | 1 allowed |
| Right to cancel (rescission) | Next business day |
| State regulator | ND Dept of Fin. Inst. |
| Minimum borrowing age | 18 |
Installment loan rules and APR caps in North Dakota
| Governing law | North Dakota Money Brokers Act (N.D. Cent. Code § 13-04.1-01 et seq.) |
|---|---|
| Required license | Money Broker License |
| Max all-in APR ($500 / 6 months) | 36% |
| Max all-in APR ($2,000 / 24 months) | 36% |
| Max all-in APR ($10,000 / 60 months) | 36% |
| Origination fee limit | Must be included within the 36% all-in APR cap (plus a potential small closing fee only on loans under $2,000 if within statutory limits) |
| Credit insurance rules | Allowed with limits |
| State regulator | North Dakota Department of Financial Institutions |
Before you borrow in North Dakota
- Verify the lender's license in North Dakota. Confirm that the lender holds an active state license with ND Dept of Fin. Inst. before sharing your bank account details or signing an agreement. You can also look up the company on NMLS Consumer Access (nmlsconsumeraccess.org), though not every state uses NMLS for every license type.
- Check the Truth in Lending disclosure box. Under the federal Truth in Lending Act and Regulation Z, every lender must give you a written disclosure showing the APR, finance charge, amount financed, and total of payments before you sign the contract.
- Compare the all-in APR and origination fee to state caps. Make sure the contract's all-in APR and any origination fee stay within the North Dakota limits shown in the tables above, such as 36% on a $500 six-month installment loan under the North Dakota Money Brokers Act. Covered active-duty servicemembers and their dependents are protected by the federal Military Lending Act, which caps covered credit at 36% Military APR.
- Review your right to cancel and payment stop protections. Check the payday table above to see how rescission (your right to cancel a loan shortly after signing) works in North Dakota. If you set up recurring electronic bank debits, federal Regulation E lets you stop preauthorized withdrawals by notifying your bank at least 3 business days before the scheduled debit, though this does not cancel the debt.
- Check credit union Payday Alternative Loans (PALs). Before taking a higher-cost non-bank loan, see if you qualify for membership at a credit union in North Dakota. Under NCUA rules, federal credit union PALs offer $200 to $2,000 for 1 to 12 months with a maximum 28% APR and an application fee of up to $20.
How online and tribal lenders fit North Dakota law
Lenders offering payday or installment loans over the internet to residents of North Dakota generally must obtain a state license from ND Dept of Fin. Inst. and comply with the rate, fee, and term limits in the North Dakota Deferred Presentment Act and the North Dakota Money Brokers Act. You can verify whether an online company is a licensed lender by checking directly with ND Dept of Fin. Inst. or by searching NMLS Consumer Access (nmlsconsumeraccess.org), though not every state uses NMLS for every license type. Some online lenders claim affiliation with a federally recognized tribe and assert that tribal sovereign immunity exempts them from North Dakota licensing and usury caps. Federal appeals courts have reached different results when reviewing tribal lending immunity: several decisions (2nd Circuit in 2014 and 2019, 4th Circuit in 2021, and 7th Circuit in 2021) supported states and the CFPB, while one decision (4th Circuit in 2019) found a lender protected by immunity.
Small-dollar lending in North Dakota by the numbers
- Residents
- 778,556
- Median household income
- $77,573
- Loan company offices
- 4
- Loan companies
- 1
- Bank branches
- 411
- Banks
- 71
- Credit unions
- 29
- Pawn shops
- 17
Sources for North Dakota counts: Financial provider totals come from our state directories, compiled using FDIC data for banks and bank branches, NCUA data for credit unions, company websites and public map listings for loan companies and offices, and Overture Maps data for pawn shops. Resident population and median household income figures come from the U.S. Census Bureau.
Detailed North Dakota loan guides and local directories
Where to file a lending complaint in North Dakota
If a lender operating in North Dakota charges more than the statutory cap, lends without a required state license, ignores your right to cancel, or uses unlawful collection tactics, save copies of your loan contract, Truth in Lending disclosures, and payment records. You can submit a formal complaint to ND Dept of Fin. Inst. in North Dakota and to the federal Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. Be aware that no lender or debt collector can have you arrested or jailed for an unpaid consumer debt.
Loan rules FAQ: North Dakota
Are payday loans legal in North Dakota?
Yes, payday loans are legal in North Dakota under the North Dakota Deferred Presentment Act for loan amounts from $100 up to $500 and repayment terms up to 60 days. State law limits finance charges to 20% of amount advanced, which equals a typical APR of ~521%.
What is the maximum APR on an installment loan in North Dakota?
Under the North Dakota Money Brokers Act, the maximum all-in APR on an installment loan in North Dakota depends on the loan amount and repayment period. State rules set the limit at 36% for a $500 six-month loan, 36% for a $2,000 two-year loan, and 36% for a $10,000 five-year loan. Check the installment table above for specific rules on origination fees and credit insurance enforced by ND Dept of Fin. Inst. in North Dakota.
What is the minimum age to take out a small loan in North Dakota?
You must be at least 18 years old to enter into a valid small-dollar loan contract in North Dakota. This minimum borrowing age applies to both storefront locations and online lenders serving North Dakota residents. Lenders will ask for government-issued identification to verify your age before issuing Truth in Lending disclosures.
Who regulates small-dollar lenders in North Dakota?
Non-bank payday and installment lenders in North Dakota are licensed and supervised by ND Dept of Fin. Inst. under state law. Borrowers can verify a lender's license status by contacting ND Dept of Fin. Inst. directly or by searching NMLS Consumer Access at nmlsconsumeraccess.org, though not every state uses NMLS for every license type. At the federal level, the Consumer Financial Protection Bureau (CFPB) also oversees federal lending disclosures and collection practices.
What should I do if a lender in North Dakota charges more than the law allows?
If a lender charges fees or an APR above the legal limits in the North Dakota Deferred Presentment Act or the North Dakota Money Brokers Act, gather your loan agreement, Truth in Lending disclosure box, and bank statements. Report the violation to ND Dept of Fin. Inst. in North Dakota and file a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov. Remember that you cannot be arrested or jailed for an unpaid consumer debt.
How do I stop a lender from taking automatic payments from my bank account?
Under federal Regulation E, you have the right to stop preauthorized recurring electronic debits by telling your bank or credit union at least 3 business days before the scheduled transfer date. Your bank may ask for written confirmation within 14 days of an oral request, and you should also notify the lender in writing that you are revoking authorization. Stopping automatic bank debits prevents further withdrawals, but it does not cancel the debt.
Small-dollar loan rules in neighboring states
How we get our numbers: We review the North Dakota Deferred Presentment Act, the North Dakota Money Brokers Act, and published rules from ND Dept of Fin. Inst. in North Dakota to summarize statutory loan limits and licensing rules. For installment loans, we use the maximum all-in APR—including interest, origination fees, and permitted administrative charges—for three standard benchmarks ($500 for 6 months, $2,000 for 24 months, and $10,000 for 60 months), based on state statutes and the state-by-state surveys of the National Consumer Law Center (NCLC). Your CU Partner is an independent educational website, not a lender or loan broker, and does not provide legal advice. Because laws and regulatory interpretations change, please confirm current rules with ND Dept of Fin. Inst. before borrowing.
Sources: Consumer Financial Protection Bureau (CFPB); National Credit Union Administration (NCUA); NMLS Consumer Access; Electronic Code of Federal Regulations — Regulation Z (12 CFR Part 1026); U.S. Census Bureau; National Consumer Law Center (NCLC).