Nebraska payday loan laws changed dramatically when voters passed Initiative 428 in 2020 — one of the largest rate-cap margins of any state ballot measure in the country.
Quick answer: Since Initiative 428 passed in November 2020 with 83% approval, Nebraska caps all payday loan fees and interest at 36% APR — replacing the old $15-per-$100 fee that produced roughly 400% APRs. Loans remain capped at $500 for 34 days, one at a time, with a $1,500 combined outstanding limit.
What Initiative 428 did
- 36% APR ceiling: replaced the prior $15-per-$100 fee structure that averaged around 400% APR.
- Effective fee cap: roughly $1.38 per $100 borrowed — a fraction of the old cost.
- Applies broadly: intended to reach lenders serving Nebraska residents, not just brick-and-mortar storefronts.
What stayed the same
The underlying Delayed Deposit Services Licensing Act still limits a single payday loan to $500 for up to 34 days, restricts borrowers to one outstanding loan at a time (combined loans capped at $1,500), bans rollovers, and prohibits criminal action against borrowers who default.
What it means for Omaha borrowers
Most traditional payday storefronts found the 36% cap made the old business model unprofitable, and many closed. That’s good news for cost, but it also means fewer instant-cash storefronts remain — credit unions, installment lenders and paycheck-advance apps have become the practical small-dollar options in Omaha.
FAQ
Is payday lending still legal in Nebraska?
Yes, but capped at 36% APR — a rate that made most traditional 400%-APR payday storefronts unworkable.
What’s the most you can borrow?
$500 per loan, with a $1,500 cap on combined outstanding payday loans.
Can I be prosecuted for not repaying?
No — Nebraska law prohibits criminal action against borrowers over payday debt.
Educational content, not financial advice. Always verify a lender is licensed by the Nebraska Department of Banking and Finance (NDBF) before borrowing.