Iowa Payday & Small-Dollar Loan Laws
Payday loans legal
Iowa caps delayed-deposit service transactions at $500 with maximum fees of $15 on the first $100 and $10 on each additional $100.
Iowa Lending Overview
Iowa residents have access to payday loans under specific state regulations that govern delayed-deposit transactions. These short-term loans are capped at a maximum principal amount of $500, with terms lasting no longer than 31 days. State law limits the finance charges lenders can assess, allowing for a $15 fee on the initial $100 borrowed and $10 for every subsequent $100. When calculated as an annual percentage rate, these fees typically result in a standard APR of approximately 337%.
Borrowers in the state often utilize these high-interest options for emergency expenses or immediate cash flow gaps between paychecks. While payday loans provide quick access to small sums, residents frequently consider installment loans or traditional personal loans for larger amounts or longer repayment schedules. These various lending products serve different financial needs depending on a borrower's credit profile and the intended use of the funds.
Maximum loan amount
$500
Maximum loan term
31 days max
Maximum APR / finance charge
~337% APR
Rollover / renewal rule
No rollovers permitted
Cooling-off period
None required
Governing statute
Iowa Code § 533D
Who regulates lenders in Iowa
Iowa Division of Banking
File a complaint with the regulator above if a lender violates state law. You can also file with the CFPB.
Iowa loan options
Other state loan laws
Reviewed by Darnell Pierce, MBA. Last reviewed January 2026. This page is informational, not legal advice — verify current rules with the state regulator before borrowing.