Per-Loan and Annual Caps
A single Iowa payday loan can't exceed $500, and the state also caps total borrowing from all payday lenders combined at $1,000 within any 12-month period — a broader ceiling than many states set, since it looks across every lender rather than per-transaction.
The Tiered Fee Schedule
Licensed lenders can charge $15 on the first $100 borrowed and $10 on each additional $100, up to the $500 maximum — plus a $15 non-sufficient-funds fee if a payment fails. On a maximum loan, that fee structure annualizes to as much as 366% APR.
No Rollovers, Two-Loan Limit
Iowa doesn't allow rolling an existing loan into a new one, and borrowers can't have more than two payday loans outstanding at the same time. Together with the $1,000 annual cap, these rules are meant to put a ceiling on how much short-term debt a single borrower can accumulate through this channel.
| Factor | Iowa Rule |
|---|---|
| Maximum single loan | $500 |
| Annual borrowing cap | $1,000 across all lenders |
| Fee schedule | $15 per first $100, $10 per additional $100 |
| Rollovers | Not permitted |
Because Iowa's annual cap applies across every lender you might use, keeping track of how much you've already borrowed in the past 12 months matters as much as comparing any single offer.
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