The 36% Voter-Approved Cap
Montana's usury law limits the annual percentage rate on consumer loans to 36%, established through a voter-approved ballot measure aimed squarely at high-cost short-term lending. Where licensed lenders still operate under this cap, loans are limited to between $50 and $300, with terms running 14 to 31 days and no rollovers or extensions permitted.
Why Traditional Payday Loans Are Mostly Gone
Since most payday-style loans nationally rely on rates far above 36% to be profitable, non-tribal lenders generally cannot offer the classic payday product in Montana. The 36% ceiling effectively priced the traditional model out of the market.
The Tribal Lending Exception
One narrow exception exists: lenders operating under tribal sovereignty are exempt from the state's usury limit. Borrowers should be aware that these tribal-affiliated lenders can charge rates far above 36% and that state consumer protections may not apply the same way to those loans.
| Factor | Montana Rule |
|---|---|
| Usury cap | 36% APR (voter-approved) |
| Licensed loan range | $50–$300 |
| Loan term | 14–31 days |
| Rollovers | Prohibited |
Because the 36% cap has priced most traditional payday lenders out of Montana, comparing licensed installment and personal-loan offers within that ceiling is the safer, more realistic path.
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