Iowa Payday Loans

Iowa Code Ann. 533D.1 et seq.
Status: Legal

Payday loans are legal in the state of Indiana, pursuant to Iowa Code Ann. 533D.1 et seq.  The number of companies offering payday loans in Indiana currently stands at 212, the loan terms allowing a maximum of $500 to be borrowed and paid back within 31 days.

Payday Loan Lending Laws in Iowa

Finance charges and fees rules for payday loans in the state of Iowa vary depending on the amount borrowed.  In addition to the $500/31 day maximums, a lender in Iowa cannot charge more than $15 for finance charges and fees for a loan under $100, although charges of $10 are allowed for every $100 borrowed thereafter. Finance charges of $16.67 can be levied for every $100 borrowed for a two-week period.

Iowa regulations also limit a borrower to having two loans open at the same time, and rollovers or extensions of the loan terms are not allowed. This also means a borrower cannot refinance or consolidate any outstanding loans for repayment, and repayment plans are not specified as a necessity under current state regulations.  A lender can charge a $15 nonsufficient funds fee for a bounced check but are prohibited from threatening a delinquent borrower with criminal prosecution in any way.

The Des Moines Register reported payday lenders in Iowa issued more than $220 million in short-term loans in 2015, charging an average annual interest rate of more than 260 percent. Stricter regulations have been suggested, such as requiring payday lenders to verify a borrower can afford to repay the loan and reporting borrower payments to credit bureaus, although none of these suggestions have been implemented into state law as of January 2017.

For the time being, the potential borrower’s best assets for ensuring the responsible use of cash advance loans include information and research.  A borrower should take the time to understand as much as they can about the lending practices in Iowa before engaging a short term loan, including the rates offered by a lender, the terms of service, and the repayment dates. And while the primary attractions of payday loans include the fast and simple application process and dispersement of funds, hasty decisions could lead a borrower to fall into a debt cycle.


To apply for a payday loan in Iowa, a potential borrower must meet these requirements:

  • Be at least 18 years old
  • Be employed for at least one month.
  • Have an active checking account
  • Be a U.S. citizen or permanent resident.

Lending Rules*

Lenders in the state of Iowa are legally required to comply by the following limitations according to Iowa Code Ann. 533D.1 et seq.:

Maximum Loan Amount:
Maximum Length of Loan:
31 days
Maximum Finance Rate & Fees:
$15: $0-$100 on face of check; $10 per $100 thereafter
Finance Charge for 14-day $100 Loan:
APR for 14-day $100 Loan:
Max # Outstanding Loans at One Time:
Rollovers Permitted:
None (cannot repay, refinance or consolidate)
Collection Fees:
One $15 NSF fee (exclusive remedy)
Criminal Action:
Not Specified
*The information displayed may not be current. For the most recent information, please visit

Regulatory Information

If you have a complaint against a Iowa Cash Advance location you can contact your state regulator below:

Iowa Division of Banking
200 East Grand Avenue, Suite 300 Des Moines IA 50309
(515) 281-4014
(515) 281-4862

Iowa Lenders

Below you can find Iowa payday loan lenders in the following cities:

Iowa Statistics**

The following information is key demographic data for the state of Iowa from the Census bureau.

Total Population:
Median Household Income:
Poverty Rate:
Median Gross Rent:
High School Graduate or Higher:
Bachelor's Degree or Higher:
**The information displayed may not be current. For the most recent information, please visit

Borrow Safely, Borrow Responsibly

While cash advance loans can be an effective way to address short-term financial emergencies, the responsibility of understanding the loan terms and repaying the loan still rests with the borrower.  Potential users should understand the loan terms including applicable fees and repayment schedules before applying; since Iowa allows more than one loan to be taken out at a time, the danger of falling into a debt cycle is especially pertinent here.  Borrowers should also contact the Iowa Division of Banking with any concerns or questions. is an independent comparison service provider. Reasonable efforts have been made to maintain accurate information throughout our website; however, all information is presented without warranty or guarantee. may receive compensation from our partners, including, but not limited to, clicking on links and lead generation.