Iowa Loan Company License Bond Guide
If you’re applying for a loan company license in Iowa, you’ll need this surety bond.
Bond Overview
- Purpose: To protect the public from unethical lending practices
- Who Needs It: Regulated consumer loan lenders in Iowa
- Regulating Body: The Iowa Division of Banking
- Required Coverage: $25,000
- Premium Rate: $250 for a 1-year term
Learn all about the bond requirements and process in this guide.
What Is an Iowa Loan Company License Bond?
An Iowa loan company license bond enforces state rules and regulations for loan companies. It protects the public from harm due to fraudulent or unethical practices.
The Iowa Division of Banking requires a surety bond for all loan company licensees as financial security to pay potential claims.
How Much Do Loan Company Bonds Cost in Iowa?
A $25,000 Iowa loan company license bond costs a flat rate of $250 for a 1-year term. Or, you can pay $250 for a 3-year term to save 25%.
Click below to buy your bond in minutes!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a Loan Company License Bond?
If you make 10 or more loans that are regulated under the Iowa Consumer Credit Code per year, you’ll need to be licensed and bonded through the Nationwide Multistate Listing System (NMLS).
These are typically loans for personal or household use with an interest rate exceeding the limit for unlicensed lenders.
How Do I Get My Bond?
With SuretyBonds.com, you can buy your Iowa loan company bond instantly online. Just enter your information and checkout in minutes.
We’ll email you the bond shortly after purchase. Be sure to file the bond with the Iowa Division of Banking as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does an Iowa Loan Company Bond Work?
As with all surety bonds, a loan company license bond creates a legal contract between three parties:
- Principal: You, the loan company owner(s) filing the bond
- Obligee: The Iowa Division of Banking requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding the provisions of the Iowa Regulated Loan Act.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you are ultimately responsible for refunding the surety.
How Do I Renew My Bond?
To renew your loan company license bond, simply pay your renewal invoice when prompted. We’ll begin contacting you by phone and email 90 days before the expiration date.
