South Dakota money lender bonds.
From $100.
South Dakota licenses money lenders through the Division of Banking, and SDCL 54-4-42 requires a bond to be submitted with the license application, not to exceed $10,000 for the first license and $2,500 for each additional license. The premium is 0.6% of the bond amount, $100 minimum.
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How much does a South Dakota money lender bond cost?
0.6% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
Money lender bonds are amount-priced, not queue-priced. Here is the entire process:
Apply online
Business details, the bond amount on your Division of Banking requirement, an effective date, and a term. No credit check up to $100,000.
Pay & e-sign
The premium is 0.6% of the bond amount with a $100 minimum, so your exact price is on screen before you pay — and the bond issues the moment you do.
File with the Division of Banking
Your executed bond and power of attorney arrive by email, ready to submit with your money lender license application or renewal through NMLS. Wet-ink original mailed on request.
What it is and who needs it.
What the bond actually guarantees
South Dakota requires anyone in the business of lending money in the state to hold a money lender license issued by the Division of Banking, applied for through the nationwide mortgage licensing system under SDCL 54-4-40. SDCL 54-4-42 requires the applicant to submit a bond with the application, satisfactory to the director and written by a surety qualified in South Dakota.
It is a three-party arrangement: you (the principal), the surety carrier, and the State of South Dakota (the obligee) — and the statute runs the bond in favor of the state and any person who has a cause of action under chapter 54-4 against you. It is conditioned on your faithful performance under the chapter and on paying amounts that come due to the state or to another person during the year the bond covers.
It is not insurance for you — if the surety pays a claim, you repay the surety. The aggregate liability of the surety can never exceed the bond amount, and the license has to stay continuously bonded, so we track your term and send renewal notices 60 and 30 days out.
You need this bond if you're
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The bond runs to September 17 whatever day you buy; the premium covers the period to that date.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the Division of Banking. Your executed bond and power of attorney arrive by email, ready to submit with your money lender license application or renewal through NMLS. Wet-ink original mailed on request.
What sets the price
The premium is 0.6% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $100,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued instantly.
These are the actual issuing fields — business details, the bond amount, an effective date, and a term. That is the application.
Start the application →Common questions.
Other South Dakota bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Money lender bond, issued today.
0.6% of the bond amount, $100 minimum, issued the moment you pay. Free until issued.