Payday loans in Iowa
Payday loans are legal in Iowa. A licensed lender may lend up to $500 and charge no more than $15 per $100 on face value of check. Every figure on this page was checked against Iowa law on November 10, 2026.
- Status
- Legal
- Maximum loan
- $500
Iowa payday loan rules at a glance
- Legal status
- Legal
- Maximum loan
- $500
- Loan term
- (No more than 31 days)
- Maximum fee
- $15 per $100 on face value of check
- Governing law
- I. C. A. 553D et seq.
- Regulator
- Iowa Division of Banking
Checked against Iowa law on November 10, 2026.
The short version
- Payday loans are legal in Iowa and lenders must hold a state license.
- The most you can borrow on one loan is $500.
- The legal maximum on a $100, 14-day loan is $15, which is 391% APR.
- Iowa Division of Banking handles licensing questions and complaints.
On this page
Are payday loans legal in Iowa?
Payday loans are legal in Iowa. A licensed lender may lend up to $500 and charge no more than $15 per $100 on face value of check.
The governing law is I. C. A. 553D et seq… Iowa Division of Banking licenses lenders and takes complaints.
Loan limits in Iowa
- Loan size: up to $500
- Loan term: No more than 31 days
What a payday loan costs in Iowa
State law sets the price rule: $15 per $100 on face value of check.
On a $100 loan repaid after 14 days, the most a lender may charge is $15. You would repay $115, an APR of 391%. For comparison, most credit cards charge between 20% and 30% APR.
Before you deal with an online lender
- Look the company up with Iowa Division of Banking. No license, no loan.
- Never pay a fee up front to get a loan. That is the mark of an advance-fee scam.
- Read the agreement for the finance charge, the APR and the due date before you give out bank details.
If you cannot repay a loan in Iowa
Contact the lender before the due date and ask for a payment plan in writing. If a lender or collector breaks the rules, file a complaint with Iowa Division of Banking and with the CFPB. Our guide to what happens if you don’t pay covers each step.
Lower-cost options in Iowa
- Credit union payday alternative loans (PALs): $200 to $2,000 at no more than 28% APR.
- A payment plan with the landlord, utility or hospital you owe often costs nothing.
- Local assistance: dial 211 for rent, utility and food programs near you.
See all payday loan alternatives or work out a loan’s price with the cost calculator.
Free help in Iowa
- 211Free, confidential referrals to local help with rent, utilities and food. Call 211.
- USA.gov: help paying billsGovernment programs for rent, energy, phone and medical bills.
- National Foundation for Credit CounselingNonprofit credit counselors who can set up a debt management plan. Call 800-388-2227.
- CFPB complaint portalFile a federal complaint about a lender or a debt collector.
Common questions
Are payday loans legal in Iowa?
Yes. Payday loans are legal in Iowa under I. C. A. 553D et seq., and lenders need a state license.
How much can I borrow with a payday loan in Iowa?
Up to $500 on a single loan.
What does a payday loan cost in Iowa?
At the legal maximum, a $100 loan for 14 days costs $15. That equals an APR of 391%. A lender may charge less, so compare before you sign.
Can I be arrested for not repaying a payday loan in Iowa?
No. Not paying a loan is a civil matter, not a crime. A lender can still sue you in civil court, so never ignore a court summons.
Where do I complain about a lender in Iowa?
Contact Iowa Division of Banking. You can also file a complaint with the Consumer Financial Protection Bureau.
Does Northlight lend money?
No. Northlight is an information site. We explain the rules and the costs; we do not make loans or credit decisions.
Sources
Keep reading
- KansasPayday loans are legal in Kansas. A $100 two-week loan can cost up to $15 (391% APR). See the loan limits, the rules lenders must follow and where to complain.
- IndianaPayday loans are legal in Indiana. A $100 two-week loan can cost up to $15 (391% APR). See the loan limits, the rules lenders must follow and where to complain.
- KentuckyPayday loans are legal in Kentucky. A $100 two-week loan can cost up to $16 (417% APR). See the loan limits, the rules lenders must follow and where to complain
- IllinoisIllinois caps small loans at 36% APR, so high-cost payday loans are not offered. See what is allowed, what it costs and the alternatives.
- LouisianaPayday loans are legal in Louisiana. A $100 two-week loan can cost up to $16.75 (437% APR). See the loan limits, the rules lenders must follow and where to comp
- IdahoPayday loans are legal in Idaho. See the loan limits, the rules lenders must follow and where to complain. Checked against state law in November 2026.