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Usury Laws in South Dakota

South Dakota has no interest cap when the rate is set in a written agreement, allows up to 12% when no rate is specified, and makes licensed lenders charging over 36% guilty of a Class 1 misdemeanor.

Last checked . General information, not legal advice.

South Dakota at a glance

Maximum agreed rate
No cap (any rate agreed in writing)
Licensed money lenders are capped at 36% a year under Initiated Measure 21, effective November 16, 2016.
Legal rate (no rate agreed)
Up to 12% (Category C rate)
Criminal usury
Licensed lender over 36%: Class 1 misdemeanor
Applies to licensees; such loans are also void and uncollectible.

Sources

Last checked

The rules in South Dakota

What is the maximum interest rate on a private loan in South Dakota?

Maximum agreed rate in South Dakota: No cap (any rate agreed in writing). Licensed money lenders are capped at 36% a year under Initiated Measure 21, effective November 16, 2016.

What interest rate applies in South Dakota when no rate was agreed?

Legal rate (no rate agreed) in South Dakota: Up to 12% (Category C rate).

When is charging high interest a crime in South Dakota?

Criminal usury in South Dakota: Licensed lender over 36%: Class 1 misdemeanor. Applies to licensees; such loans are also void and uncollectible.

Where do the South Dakota usury laws come from?

The rules above come from S.D. Codified Laws 54-3-1.1, S.D. Codified Laws 54-3-4, S.D. Codified Laws 54-3-16, S.D. Codified Laws 54-4-44 and S.D. Codified Laws 54-3-5.1. Each source is linked on this page. We last checked them in October 2026.

Good to know

Judgments carry the Category B rate of 10% a year.

What this means in practice

Put the interest rate in writing. Many usury statutes set one limit for written agreements and a different, often lower, rate when nothing was agreed in writing. A signed promissory note or loan agreement that states the rate, the payment schedule and what happens on late payment avoids most disputes.

Count every charge, not only the stated rate. Courts may treat fees, points, required extras or a discount taken from the amount lent as interest when deciding whether a loan is usurious. A loan with a modest rate and large fees can still cross the limit.

Check who the lender is and what the loan is for. Usury limits often do not apply, or apply differently, to banks, licensed consumer lenders, credit card issuers, larger loans and loans to businesses or corporations. A rule written for loans between individuals may not cover your situation, so read the statute and its exceptions.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.