South Dakota is known in the US as a state friendly to the cash loan industry, which is steadily growing in the region. With almost 300 cash loan branches operating all around it, South Dakota is ranked number 2 in the whole nation for the sheer number of such operations per capita.
Cash loans (sometimes called payday advances) are usually short term, giving the borrower less than a month to repay the balance. Small sums (under $1,000) are loaned to those who find themselves in need because of a financial emergency. Borrowers are then expected to pay back what they owe when they receive their next paycheck.
Imagine that the central heating in your home has broken down in the midst of winter. You simply don't have the ready cash to pay for repairs right now, and won't have until your next payday the following Friday. But, you have to get that heating fixed now. This is where cash loan companies can lend a hand, lending you the money you need so you and your family don't get cold.
Unlike major financial institutions, cash loan companies won't make you jump through hoops to get your money. You won't be credit checked, and you won't be made to suffer hours of fruitless bureaucracy. You'll be judged on your own merits and on the regular income you get from your job.
Most companies will lend on the basis of a post-dated check made out by you to them. This check includes the loan amount plus any relevant fees. When the loan's term is completed, the company banks the check for the correct amount and hangs on to the fees.
South Dakota has specific legislation to protect the rights of borrowers and lenders alike. Only 4 rollovers per loan are permitted, rollovers being repayments of an original loan with other loans. In South Dakota, there is no maximum interest rate set, so borrowers should be wary of this.