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Payday loans by state

Payday Loans in Iowa: Laws, Limits and Costs

Payday loans are legal in Iowa and regulated by the Iowa Division of Banking. Here are the rules that apply, what a loan typically costs and how to check a lender before you borrow.

Key takeaways
  • Payday loans are legal in Iowa under the Iowa delayed deposit services law (Iowa Code ch. 533D).
  • The typical APR on a $400 payday loan in Iowa was 247% (CRL, June 2023, from state regulator data).
  • Borrowing $300 at the maximum fee costs $35 on a $300 check.

Payday loan rules in Iowa

RuleIowa
MaximumChecks totaling $500 or less, including fees
Maximum fee$15 on the first $100, $10 on each additional $100
Loan termUp to 31 days
Checks at onceUp to two per lender

Rules checked 2026-10-04. Laws change, so confirm current limits with the Iowa Division of Banking.

What a payday loan costs in Iowa

The Center for Responsible Lending found the typical APR on a $400 single-payment payday loan in Iowa was 247%, based on data from the state regulator (June 2023). Under the state’s fee limits, borrowing $300 costs $35 on a $300 check. Use our cost calculator to turn any offer into an APR.

Plan the repayment

Most payday loans are due in one payment on your next payday. If repaying leaves you short again, ask about an extended payment plan and avoid renewals.

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How to check a lender in Iowa

  1. Make sure the lender is licensed by the Iowa Division of Banking. Many lenders can also be looked up on NMLS Consumer Access.
  2. Get the APR and finance charge in writing before you sign. Federal law requires them.
  3. Be careful with online lenders that say Iowa law does not apply to them because they are tribal or offshore.
  4. File complaints with the state regulator and the CFPB.

Cheaper options in Iowa

  • Credit union payday alternative loans (PALs): $200–$2,000 at no more than 28% APR. Search for a federal credit union in Iowa that offers them. See how PALs work.
  • Your bank’s small-dollar loan, if it offers one. See bank small-dollar loans.
  • Cash advance apps for $20–$500 based on your direct deposits. See apps compared.
  • 211: call or text 211 for local help with rent, utilities and food.

Iowa cities

Local guides for 609 Iowa cities and towns, with credit unions, nearby towns and the rules that apply.

All 609 Iowa cities, A to Z

Need cash before payday?Send one free request to our lender network. We are not a lender; offers and rates come from lenders.

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Frequently asked questions

Are payday loans legal in Iowa?

Yes. Payday lending is legal in Iowa under the Iowa delayed deposit services law (Iowa Code ch. 533D) and is regulated by the Iowa Division of Banking.

What is the typical payday loan APR in Iowa?

The Center for Responsible Lending reported a typical APR of 247% on a $400 payday loan in Iowa, using state regulator data (June 2023).

Where can I complain about a payday lender in Iowa?

Contact the Iowa Division of Banking and file a complaint with the Consumer Financial Protection Bureau.

Sources

  1. Iowa Division of Banking — Delayed deposit services history
  2. Iowa Administrative Code ch. 17 — Delayed deposit services
  3. Center for Responsible Lending — Red Alert Rates: APRs on $400 single-payment payday loans (June 2023)
  4. NMLS Consumer Access — check a lender’s license
  5. CDFI Fund — NCUA payday alternative loans summary
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