State reference · MT

Montana lending rules

Montana has 127 Census places covered on Paydayloaning, with a combined estimated population of 582,601. Payday and small-loan terms in Montana are set by licensed lenders under state law; the sourced rules below apply to every borrower in the state.

Advertising disclosure: Paydayloaning may receive a referral fee if you apply through the link above. That fee does not change the rate you are offered, and it does not change our content. We are not a lender. The lowest rates are only available to the most qualified applicants. Read the full disclosure.

The verdict

Legal

Source: Montana Legislative Services Division (Montana Code Annotated) · as of 2026-09-16

Maximum rate
Greater of 15% or prime rate + 6 percentage points per year (written agreement)
Montana Legislative Services Division (Montana Code Annotated)
Licensing
Consumer loan license required under the Montana Consumer Loan Act (32-5-101)
Montana Department of Administration, Division of Banking and Financial Institutions
Regulator
Montana Division of Banking and Financial Institutions (BFID), Department of Administration
Montana Department of Administration, Division of Banking and Financial Institutions

Rules are quoted from the cited sources. How payday lending is regulated.

By the Paydayloaning Editorial Team · Last updated 2026-09-16

Key rules for borrowers in Montana

Quoted from the statute, regulator or agency named in each row.

RuleDetailSource
Maximum legal interest rate (usury cap) Greater of 15% or prime rate + 6 percentage points per year (written agreement); regulated lenders exempt
Source says: "Parties may agree in writing to the payment of any rate of interest that does not exceed the greater of 15%"
Montana Legislative Services Division (Montana Code Annotated)
as of 2026-09-16
Payday lending status Legal; deferred deposit lenders must be licensed; fee capped at 36% per annum
Source says: "A licensee may not charge a fee for making or carrying each deferred deposit loan authorized by this part that exceeds 36% per annum"
Montana Legislative Services Division (Montana Code Annotated)
as of 2026-09-16
Small-loan / installment lender licensing Consumer loan license required under the Montana Consumer Loan Act (32-5-101); licensing through NMLS
Source says: "A consumer loan license is needed to engage in business as defined in the Montana Consumer Loan Act"
Montana Department of Administration, Division of Banking and Financial Institutions
as of 2026-09-16
State lending regulator Montana Division of Banking and Financial Institutions (BFID), Department of Administration
Source says: "The Montana Division of Banking and Financial Institutions (Division) does all of its licensing through the Nationwide Multistate Licensing System (NMLS)."
Montana Department of Administration, Division of Banking and Financial Institutions
as of 2026-09-16
Deferred deposit loan license requirement (MCA 31-1-705) A person may not engage in or offer to engage in the business of making deferred deposit loans unless licensed by the department
Source says: "A person may not engage in or offer to engage in the business of making deferred deposit loans unless licensed by the department."
Montana Legislative Services Division (Montana Code Annotated)
as of 2026-09-16

Cities in Montana

All Montana cities

We cover 127 Census places in Montana.

Advertising disclosure: Paydayloaning may receive a referral fee if you apply through the link above. That fee does not change the rate you are offered, and it does not change our content. We are not a lender. The lowest rates are only available to the most qualified applicants. Read the full disclosure.

Frequently asked questions

What interest rate can a lender charge in Montana?
It depends on the product and the statute that governs it. The sourced table on this page lists Montana's usury cap and the licensing rules, each with its publisher and a link to the primary source.
Are payday loans legal in Montana?
Payday lending is regulated state by state; some states permit it, some cap it, and some prohibit it outright. See the sourced figure on this page for the current position.
Do I need a license to lend money in Montana?
Most consumer lenders must be licensed by the state regulator named on this page. You can verify a lender's license with that regulator before you sign anything.

Related

Advertising disclosure: we may receive a referral fee. The lowest rates are only available to the most qualified applicants.

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