Midwest · Allowed
Payday loans in Iowa
Storefront payday lending is permitted in Iowa. State law caps what lenders can charge — the limits below are the legal ceiling, and honest lenders stay under it.
The limits below are the legal ceiling — any offer above them is being made outside the law.
The rules behind the numbers
Delayed deposit transactions are short-term loans designed to address emergency financial needs and should not be used as long-term options.
In practice: borrow $300 for a standard term and the finance charge is $35 — $335 repaid at the end, about 304% APR. Every compliant lender in Iowa has to fit inside that schedule.
Statute: Iowa Code Ch. 533D
Regulator: Iowa Division of Banking · www.idob.state.ia.us
Questions people ask here
How much can a payday loan cost in Iowa?
State law caps fees at $15 on first $100, plus $10 per additional $100. On a typical $300 loan that works out to about $35 in finance charges — repaying $335 in total. A lender charging more than the cap is operating illegally.
What happens if I can't repay on time in Iowa?
This state's rules on rolling the loan over: forbidden. If you can't pay, ask the lender for an extended payment plan before you renew — and call the state regulator if the plan is refused.
Are online payday lenders legal in Iowa?
Only lenders licensed in Iowa may make loans to residents at these terms — the license, not the website, decides what's legal. Out-of-state lenders offering terms above the state cap are operating outside the law.
Who regulates payday lenders in Iowa?
Complaints about a licensed lender go to the Iowa Division of Banking (www.idob.state.ia.us) — keep the loan agreement and every fee disclosure you were given.
33 storefront lender locations listed statewide in the 2022-02-20 public directory snapshot — each city guide carries its local list.