Iowa maximum interest rate is the answer to “maximum interest rate allowed by law in Iowa”. This guide gives the Iowa figures in a dated table, explains in plain words what they mean, walks through the steps, and points to the official forms and free help.
The Iowa maximum interest rate figures on this page were verified against a dated 50-state compilation and Iowa sources as of October 2026; the statute named here is where to check them yourself.
Iowa maximum interest rate at a Glance
| Legal rate when no rate is agreed | 5% per year when not in writing |
| Maximum rate in a written contract | set each month by the Superintendent of Banking at 2 points above the average 10-year Treasury rate, rounded to 0.25% |
| Who the cap does not reach | supervised financial institutions may charge up to 21% and chapter 536 licensees up to 36%, depending on the loan |
| Statute | Iowa Code 535.2 |
In This Iowa maximum interest rate Guide:
What the Iowa Maximum Interest Rate Means
Usury means charging more interest than Iowa law allows. Iowa uses two different figures. The legal rate is a default that applies only when the parties never agreed on a rate. The contract cap is the highest rate a covered lender may charge in a written agreement, and it changes from month to month.
Confirm the figure for the month your contract was signed with the statute or the Division of Banking.
The Iowa maximum interest rate Figures
| Rule | Bonus Bank Daily verified figure |
|---|---|
| Legal rate when no rate is agreed | 5% per year when not in writingcompilation / agency — verified Oct 2026 |
| Maximum rate in a written contract | set each month by the Superintendent of Banking at 2 points above the average 10-year Treasury rate, rounded to 0.25%compilation / agency — verified Oct 2026 |
| Who the cap does not reach | supervised financial institutions may charge up to 21% and chapter 536 licensees up to 36%, depending on the loancompilation / agency — verified Oct 2026 |
| Statute | Iowa Code 535.2compilation / agency — verified Oct 2026 |
The Iowa maximum interest rate figures on this page were verified against a dated 50-state compilation and Iowa sources as of October 2026; the statute named here is where to check them yourself.
Who the Iowa Maximum Interest Rate Applies To
The cap generally covers written loans between people and lenders that no other law exempts. The statute exempts domestic and foreign corporations, real estate investment trusts, and people who buy securities on credit from registered brokers or dealers. It also exempts credit for business or agricultural purposes, and personal, family or household credit above the threshold amount set in Iowa Code 537.1301.
Banks chartered in other states and licensed consumer lenders usually work under separate federal or state licensing rules, so the general cap often does not limit them.
Credit Cards and the Iowa Maximum Interest Rate
Federal law lets a national bank charge the interest rate allowed in the state where the bank is based, and it can apply that rate to customers in Iowa. Many card issuers are based in states with high or no rate limits. Because of this, a card rate above the Iowa contract cap is usually legal. Your cardholder agreement names the issuing bank and its home state.
What Happens When a Lender Breaks the Iowa Maximum Interest Rate
When a loan breaks the cap, the borrower may be able to recover the excess interest or more, depending on the statute, and charging above a criminal threshold can be a crime.
How to Check a Loan Against the Iowa Maximum Interest Rate
1) Find the APR or interest rate and the date you signed in your loan papers. 2) Find the maximum rate the Superintendent of Banking published for that month; it appears in the Iowa Administrative Bulletin. 3) Check whether the lender is a bank or a licensed lender, and whether the loan was for business or agricultural purposes or above the exempt threshold. 4) Compare the two rates.
Confirm what you find with the statute, the court clerk or an attorney.
Where to Report a Loan Above the Iowa Maximum Interest Rate
The Iowa Division of Banking, now part of the Department of Insurance and Financial Services, licenses loan companies and takes complaints about state-chartered banks and Iowa-licensed lenders. You can look up a lender on NMLS Consumer Access. You can also file a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.
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Common Mistakes With Iowa maximum interest rate
The most common mistake is missing a deadline: court and creditor deadlines run whether or not you have read the papers, and a missed one usually cannot be undone. The second is relying on an old article or a friend’s experience in another state — the rules on this page differ from state to state and change often, which is why every figure here is dated.
The third is not keeping copies: every letter, form, receipt and bank statement may matter later, so keep them together and note the date you received each one.
Free Help With Iowa maximum interest rate in Iowa
You do not have to handle this alone or pay to get answers. The Iowa court self-help center explains the forms and the steps, and court clerks can tell you where and how to file, although they cannot give legal advice.
Legal aid organizations represent many people at no cost when income is limited, and the Iowa bar’s lawyer referral service can connect you with a lawyer for a low-cost first consultation. The Consumer Financial Protection Bureau accepts complaints about lenders, banks and debt collectors nationwide.
How We Verify the Iowa maximum interest rate Figures
Every figure in the table above comes from our 50-state data file, built by reading the Iowa statute or an official compilation of it, and each one carries the month we last checked it. Our writers do not change those figures; they explain them. When the law changes, the figure is updated and the date moves.
If something on this page no longer matches the statute, the statute controls — and we want to hear about it.
The Superintendent must set each month’s maximum rate by the 20th day of the month before it applies. The rate is published in the Iowa Administrative Bulletin or as a legal notice in a Polk County newspaper, and it takes effect on the first day of the next month. Under Iowa Code 535.12, agricultural credit corporations may charge more than the general cap on loans for agricultural production.
Next rung: the Iowa payday loan page covers the short-term loans that have their own caps.
Iowa — the bottom line
- Iowa maximum interest rate rules set two numbers — the legal rate and the written-contract cap — both in the table above.
- Many lenders sit outside the Iowa maximum interest rate cap by license or charter, so check which rule covers your loan.
- If a loan breaks the Iowa maximum interest rate rules, keep the agreement and report it to the state regulator.
Iowa Maximum Interest Rate FAQ
What is the maximum interest rate allowed by law in Iowa?
Without an agreement: 5% per year when not in writing. In a written contract: set each month by the Superintendent of Banking at 2 points above the average 10-year Treasury rate, rounded to 0.25%.
Official Iowa Sources & Resources
- Statute and the Conference of State Bank Supervisors 50-state usury survey (verified by each state regulator) — maximum legal interest rate: https://www.csbs.org/50-state-survey-consumer-finance-laws
- Statute and the Conference of State Bank Supervisors 50-state usury survey (verified by each state regulator) — maximum legal interest rate: https://facts.csbs.org/consumer-finance-law/dev
- Iowa statute / opinion: https://www.legis.iowa.gov/docs/code/535.2.pdf
- Iowa Division of Banking – File a Complaint: https://idob.iowa.gov/how-do-i-file-complaint
- Consumer Financial Protection Bureau: consumerfinance.gov
This Iowa maximum interest rate guide was last verified against official Iowa sources in October 2026. Rules change — confirm the current rule with the statute or a licensed attorney.
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Disclaimer: This guide is general information, not legal or financial advice. Bonus Bank Daily is an independent educational resource — not a law firm, not a bank, not a debt collector and not a government agency. Judgment, levy, interest-rate and debt rules change — every figure here carries the date we verified it.
Confirm the current rule with the statute, the court clerk or a licensed attorney in your state before you act.