SD money lender bonds.
From $100. Enter your amount.

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, your exact price appears at the application, and the bond issues the moment you pay. Any credit screen is a soft pull only — it never affects your score.

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Required to hold a South Dakota money lender license under SDCL 54-4-42

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Amount capped by statute — up to $10,000 for the first license, $2,500 per additional license

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0.6% of the bond amount, $100 minimum — exact price at the application, issued the moment you pay

0.6% rate$100 minimumInstantissuance at checkoutSoft pullnever a hard inquiry

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How it works

Three steps. One sitting.

Money lender bonds are amount-priced, not queue-priced. Here is the entire process:

NOW · ONLINE

Apply online

Business details, the bond amount on your Division of Banking requirement, an effective date, and a term. That is the entire application, and any credit screen is a soft pull that never shows as a hard inquiry.

INSTANTLY

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.

SAME DAY

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.

About this bond

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.

SDCL 54-4-42Section 54-4-42 of the South Dakota Codified Laws requires a money lender license applicant to submit with the application a bond in an amount not to exceed $10,000 for the first license and $2,500 for each additional license. The bond must be satisfactory to the director, issued by a surety company qualified to do business as a surety in South Dakota, and run in favor of the state for the use of the state and any person with a cause of action under chapter 54-4. It is conditioned on the licensee's faithful performance under the chapter and on payment of amounts due to the state or another person during the calendar year the bond is given, with the surety's aggregate liability capped at the bond amount.

You need this bond if you're

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Applying for a South Dakota money lender license — the bond is filed with the application itself

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Renewing a money lender license with the Division of Banking through NMLS

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Adding a licensed location — the statute adds up to $2,500 of bond for each additional license

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Reinstating a license that lapsed with an expired or cancelled bond

One application, issued instantly.

These are the actual issuing fields — business details, the bond amount, an effective date, and a term. That is the entire application.

Start the application →

FAQ

Common questions.

How much is the South Dakota money lender bond?The premium is 0.6% of the bond amount with a $100 minimum. Because SDCL 54-4-42 caps the bond at $10,000 for a first license, most money lenders land at the $100 minimum — and your exact price appears at the application, before you pay.

What bond amount do I need?The director sets it, up to the statutory ceiling: not more than $10,000 for the first license and $2,500 for each additional license. Use the amount on your Division of Banking requirement — if you hold several licenses, the additional-license amounts stack.

Do I pay the bond amount?No. You pay the premium — 0.6% of the bond amount, $100 minimum. The bond amount is the surety’s maximum liability if a valid claim is made against the bond, not a deposit, and nobody holds your money.

Is there a credit check?If a credit screen runs on this bond, it is a soft credit pull only — never a hard inquiry, and it never affects your score. The 0.6% rate with the $100 minimum holds either way.

Who requires the bond, and where do I file it?The South Dakota Division of Banking, part of the Department of Labor and Regulation. Money lender licensing runs through the nationwide mortgage licensing system under SDCL 54-4-40, and the bond is submitted with your license application.

Related bonds

Other South Dakota bonds.

Money lender bond, issued today.

0.6% of the bond amount, $100 minimum, issued the moment you pay. Free until issued.

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