Illinois Payday Loan License Bond Overview
- Purpose: To ensure short-term consumer lenders uphold state laws
- Who Needs It: All payday lenders in Illinois
- Regulating Body: The Illinois Department of Financial & Professional Regulation
- Bond Amount: $50,000–$500,000, based on number of locations
- Minimum Price: $500, or 1% of the bond amount
What Is an Illinois Payday Loan License Bond?
If you make short-term consumer loans in Illinois, you need a payday loan license bond. This protects consumers from unlawful or fraudulent payday lending practices.
Bond Coverage Requirements for Illinois Payday Lenders
The Illinois Department of Financial & Professional Regulation (IDFPR) requires you to provide $50,000 in bond coverage for each business location, up to $500,000.
| Number of Locations | Bond Amount |
|---|---|
| 1 | $50,000 |
| 2 | $100,000 |
| 3 | $150,000 |
| 4 | $200,000 |
| 5 | $250,000 |
| 10 | $500,000 |
How Much Do Payday Lender Bonds Cost?
Illinois payday loan license bonds start at $500, or 1% of the bond amount. Your premium may be prorated based on the purchase date.
We’ll run a soft credit check to determine your exact rate. Apply for a free quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Illinois Payday Lender Bond Work?
When you file this bond, you enter into a legal contract between you, the state and the surety.
| Bond Party | Description |
|---|---|
| 1) Principal | The payday lender purchasing the bond |
| 2) Obligee | The Illinois Department of Financial & Professional Regulation requiring the bond |
| 3) Surety | The issuing surety provider |
If you violate the Illinois Payday Loan Reform Act, harmed parties can file claims against your bond. The surety will pay valid claims up to your full bond amount. However, you must ultimately refund the surety.
How Do I Get a Payday Loan Bond in Illinois?
You can apply for a free quote right on this page! Once we have your information, we’ll email your exact price within one business day.
At checkout, you can select from overnight, two-day or three-day FedEx shipping. Rates are $20–$40.
How Do I Renew My Bond?
Illinois payday loan bonds expire annually on December 31. Once you pay the renewal premium, we’ll issue a continuation certificate to extend your bond for another year. Be sure to file this form with the IDFPR.
Note: If you choose not to renew your license, you’ll still need to keep an active bond for three years after your license ends.
How Do I Update My Bond Information?
If you need to make changes to your business or personal information, simply email [email protected]. When possible, we’ll issue a free bond rider to amend your form.
How to Become a Payday Lender in Illinois
To get a payday loan license in Illinois, submit the following materials online via NMLS:
- Financial statements demonstrating a company net worth of at least $30,000 (does not need to be audited)
- Credit report
- Business plan and organizational chart
- Certificate of Authority
- Surety bond
Renewals are due on December 1 annually. After December 31, your license will be revoked, and you will have to apply for a new license.
How Much Does It Cost to Get a Payday Loan License in Illinois?
You can expect to pay at least $1,620 to get your payday loan license. This includes the following fees:
| Fee | Amount |
|---|---|
| Surety Bond | $500+ annually |
| License | $1,000 per location |
| NMLS Processing | $120 (company), $25 (branch) |
