Payday Loans in Iowa
Page last reviewed: October 28, 2026 · Reviewed for accuracy by Peter Kizza
Yes, payday loans are legal in Iowa, where the law calls them delayed deposit services. A lender licensed by the Division of Banking can hold up to $500 in checks from you for no more than 31 days, and the fee on a $500 check can't top $55.
| Limit | $500 in checks, and no more than two checks, per lender |
| Fee cap | $15 on the first $100 of the check, $10 on each $100 after |
| Example | $500 check for 14 days: $55 fee, $445 cash, about 322% APR |
| Term | 31 days at most; can't be paid off with a new payday loan |
| You need | ID, proof of income and a checking account |
LendUp isn't a lender. We pass your request to lenders in our network; offers aren't guaranteed, and we may earn compensation if a loan is funded.
Fees on Iowa Payday Checks From $100 to $500
| Check | Max fee | Cash to you | APR, 14 days |
|---|---|---|---|
| $100 | $15 | $85 | ~460% |
| $200 | $25 | $175 | ~372% |
| $300 | $35 | $265 | ~344% |
| $400 | $45 | $355 | ~330% |
| $500 | $55 | $445 | ~322% |
Worked out from Iowa law, not offers from lenders in our network; a lender can charge less.
Iowa sets the fee on the face amount of your check, so it comes out of the check rather than on top of it. The longer the lender holds the check, the lower the APR: a $500 check held the full 31 days works out to about 146%.
- If your check bounces, the lender can charge one penalty of no more than $15, however long the check stays unpaid.
- Beyond the fee and that penalty, no other charge is allowed.
- The lender can't make you take the money in a way that costs you extra fees.
Two Checks, $500 and 31 Days: Iowa's Payday Limits
- A lender can hold no more than two of your checks at a time, and no more than $500 in all. Related companies, employees and agents count as the same lender.
- No check can be held longer than 31 days.
- A lender can't pay off, refinance or consolidate your payday loan with the money from another one it makes you.
- From October 21, 2026, a new loan on the day you repay one is allowed only if the old and new checks together stay within $500 and two checks.
When you take the loan, the lender must give you a written notice of the fee, the APR, the date it will deposit your check and any bounced-check penalty, and it must post its fees in every office.
What Iowa's 2024 Payday Figures Show
Payday licensees reported $9.36 million in charges and 240 collection lawsuits for the year, according to the Superintendent of Banking's annual report.
Online Payday Offers and Iowa's In-State Rule
Iowa licenses a payday lender only if it's physically located in the state, and a licensee may operate only from its approved principal office and branches in the same county. Running a payday business without a license is a serious misdemeanor.
Banks, credit unions and industrial loan companies are exempt from the payday law. Need longer than 31 days? A regulated installment loan is repaid monthly at no more than 36% a year; see Iowa loan options.
Requesting an Iowa Payday Loan: Check, Fee, Date
- Have your ID, proof of income and checking account details ready, and size the check: the fee comes out of it, so a $300 check gets you $265.
- Submit one request through LendUp. Lenders in our network review it, and any offer shows the APR, payments and total cost before you sign.
- Find the deposit date on the lender's notice, and make sure your account will cover the check that day.
Finding an Iowa Delayed Deposit License in NMLS
- Search NMLS Consumer Access by the lender's legal name or NMLS number.
- Look for an active Iowa Delayed Deposit Services license.
- Check that the licensed office is in Iowa and that its name and address match your agreement.
Questions or a complaint: Iowa Division of Banking, 515-281-4014, or its online complaint form.
Common Questions
Can I get a payday loan online in Iowa?
You can send a request online through LendUp, but the loan must come from a lender licensed by the Iowa Division of Banking, and Iowa licenses only payday lenders physically located in the state. Check the license in NMLS before you sign.
How much can I borrow with a payday loan in Iowa?
Up to $500 in checks held by one lender, in no more than two checks. With the fee taken out, a $500 check gets you $445.
How much does a $500 payday loan cost in Iowa?
No more than $55: $15 on the first $100 and $10 on each of the next four. Held 14 days, that's about 322% APR.
Can I roll over a payday loan in Iowa?
No. A lender can't hold a check longer than 31 days, and it can't pay off or refinance your loan with a new payday loan it makes you.
What happens if my payday check bounces in Iowa?
The lender can charge a one-time penalty of up to $15. If it does, no other penalties apply.
How many payday loans can I have in Iowa?
One lender can hold no more than two of your checks at a time, totaling $500 or less.
Official Sources
General information, not legal advice. Facts on this page were checked against these sources on October 28, 2026.
- Iowa Code ch. 533D - Delayed deposit services (payday loans)
- Iowa Admin. Code 187-17 - Delayed deposit rules (eff. Oct. 21, 2026)
- Iowa Superintendent of Banking - Annual report, year ending June 30, 2025
- Iowa Division of Banking - Finance license verification
- Iowa Division of Banking - How to file a complaint