Iowa Passes Higher Maximum Interest Rates on Regulated Loans

Iowa recently amended its law to change its maximum interest rate or charges on regulated loans to 3% per month (36% per year).  Prior to this amendment, the maximum interest rate or charges was tiered based on the loan’s unpaid principal balance, with a maximum of 3% per month allowed only on loans with an unpaid principal balance of $150 or less.  Also amended was the service charge amount allowed on consumer credit transactions, which now will not be allowed to exceed the lesser of 3% of the amount financed or $100.  The amendments are effective on July 1, 2026.