Installment Loan Lender License

Installment lenders advertise, solicit, offer, or process installment loans. Learn about obtaining and maintaining an installment loan direct lender license.

Installment loans are regulated at the federal and state levels. Some states have special statutes for installment loans. In other states, provisions regarding installment loans are embedded in a more broadly applicable consumer lending statute. Federal law can override regulations in states with fewer protections.

How to Apply for an Installment Loan Direct Lender License

While state requirements vary, most states require installment loan companies to ensure their employees have individual lender licenses. Any employee that interacts with customers and has access to customer loan information could be required to obtain licensure. Applications are often submitted to state governing agencies or the Nationwide Multistate Licensing System & Registry (NMLS).

Licensees are often required to obtain a minimum surety bond to provide financial guarantees that contracts, loans, etc., will be completed according to mutual terms. Agencies may be able to purchase a corporate surety bond. If you're uncertain about your business' needs, the finance license experts from Harbor Compliance can help.

There are numerous documents needed to complete the application process. Requirements often include a detailed business plan or general business information, financial statements, and background checks. As a company, you may also need to obtain installment lender branch approval. Remember that you will need to appoint a registered agent to receive notice of lawsuits and other legal or government notices regardless of state requirements.

Maintenance and Renewal

There are a number of steps businesses need to take to ensure they continue to comply with state laws after receiving an installment lender branch license. Renewals may be required on an annual or biennial basis. It is imperative to keep accurate and detailed financial records of all transactions to ensure your business operates within state requirements. In terms of expansion, new branches will likely need to obtain additional licensure.

Installment loan lenders also need to be aware of their states' right to conduct business inspections/examinations. Depending on statutory requirements, regulatory state departments may be allowed to conduct inspections on a scheduled or unscheduled basis.

In addition to annual requirements, installment lender licenses may be required to submit quarterly activity to state financial authorities. Failure to do so could result in fines or company-wide penalties.

Keeping on track with your business' license renewals can be complicated, especially as a growing company. At Harbor Compliance, our managed annual reporting and registered agent services ensure accurate due date tracking and on-time filing. This way, your business will continue to be compliant with state and local requirements, and you will have the time you need to continue working and expanding your clientele.

Meeting the installment loan lender license or branch requirements is not always easy. Fortunately, Harbor Compliance License Manager helps finance professionals maintain their licenses by automating repetitive tasks such as tracking renewals. Through License Manager, you can also access Compliance Core™ data for the states in which you operate, reducing the time you need to spend researching state requirements. Contact our licensing experts today to learn more.

State Licensing Requirements

To properly apply for and maintain a license, it is imperative to stay on top of your requirements. Click on the link below to view licensing information in your state.

Click on the link below to view licensing information in your state.