Maryland Consumer Loan License Bond Overview
- Purpose: To ensure consumer lenders uphold state law
- Who Needs It: Anyone who makes consumer loans or advances money to consumers in Maryland
- Regulating Body: The Maryland Commissioner of Financial Regulation
- Bond Amount: $50,000–$150,000, based on number of locations
- Minimum Price: $500, credit-based
What Is a Maryland Consumer Loan License Bond?
A Maryland consumer loan license bond protects borrowers if lenders break state laws.
If you originate consumer loans or make credit advances, you need a consumer loan license. The Maryland Office of Financial Regulation (OFR) also requires you to have $50,000 in bond coverage per location, up to a maximum of $150,000.
How Much Do Consumer Lender Bonds Cost in Maryland?
Maryland consumer lender bonds start at $500, or 1% of the bond amount. Your exact rate will depend on your required coverage and personal credit score. Apply for a free quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Maryland Consumer Lender Bond Work?
A Maryland consumer lender bond forms a legal contract between you, the state and the surety.
| Bond Party | Description |
|---|---|
| Principal | The lender purchasing the bond |
| Obligee | The Maryland Commissioner of Financial Regulation requiring the bond |
| Surety | The issuing surety provider |
By filing this bond, you promise to uphold the Maryland Consumer Loan Law. If you violate these regulations, those affected can file bond claims. You’ll need to reimburse the surety for any claims paid.
How Do I Get Bonded?
Getting bonded as a consumer lender is simple! Just fill out the quote request form to get started. We’ll email your personalized quote within one business day.
How Do I File My Bond?
We’ll upload your official bond form to NMLS on your behalf. However, you’ll need to grant authority to your issuing surety provider.
When you log in to your NMLS account, enter the surety’s name or identifier (NAIC/NPN). Your bond can’t be accepted by the OFR until you authorize the surety.
Can I Get Bonded With Bad Credit?
You might still be able to get bonded with bad credit, but you’ll likely pay a higher premium. Quotes are free and have no impact on your score — apply now!
How Do I Renew My Bond?
Maryland consumer loan license bonds expire annually on the issue date. These bonds automatically renew once you pay the next year’s premium. We’ll send you reminders and an invoice starting 90 days before expiration.
How Do I Update My Bond Form?
If you need to update your personal information or coverage amount, email [email protected]. We’ll issue a bond rider, if possible. Be sure to file this with the OFR.
How to Become a Consumer Loan Lender in Maryland
To apply for a license, submit the following materials via NMLS:
- Business plan and management chart
- Surety bond authorization
- Liquid asset letter showing $20,000 in funds or a reviewed or audited financial statement
- Certificate of authority
- Internal policies
- Document samples, such as client contracts and disclosures
- Formation documents
- Proof of a trust account only for client funds
- Warehouse Line of Credit documentation
- Earned wage access providers information
You only need one license, no matter the number of locations. However, you’ll need to disclose each location to the state and use the total number of locations to calculate your bond amount.
How Much Does It Cost to Get a Consumer Loan License?
You can expect to pay at least $1,570 to get your Maryland consumer loan license. This includes the following upfront fees.
| Fee | Amount |
|---|---|
| Application | $100 |
| License | $850 |
| NMLS Processing Fee | $120 |
| Surety Bond | $500+ |
