Initiative 428
In November 2020, Nebraska voters passed Initiative 428 by an overwhelming margin, capping delayed deposit services (payday loans) at 36% APR, effective November 3, 2020. The measure made Nebraska the 17th state, plus DC, to cap payday loan interest rates at 36% or below.
Loan Limits Under the Cap
Under Initiative 428, loan amounts are capped at $500 with a maximum term of 34 days, and the total cost — interest and fees combined — cannot exceed the 36% APR ceiling. All lenders must be licensed by the Nebraska Department of Banking and Finance under the Delayed Deposit Services Licensing Act.
Market Impact
Most storefront payday lending chains that had operated in Nebraska's major cities reduced their footprint or exited the state entirely once the 36% cap took effect, since the traditional payday business model depends on rates well above that ceiling. The market has since stabilized around a smaller set of lenders built to operate compliantly at 36%.
| Factor | Nebraska Rule |
|---|---|
| Rate cap | 36% APR (Initiative 428) |
| Loan amount | Up to $500 |
| Loan term | Up to 34 days |
| Voter approval | ~83% in favor, Nov. 2020 |
Since Nebraska's 36% cap eliminated most triple-digit APR offers, comparing licensed lenders that already operate within the ceiling is the practical way to shop here.
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