Illinois Loan Broker Bond

An Illinois loan broker bond guarantees compliance with the Illinois Loan Brokers Act, protects consumers, and must be filed with the Secretary of State (obligee: State of Illinois) using the official bond form. The statute requires a $25,000 bond amount under 815 ILCS 175/15‑15. Premiums typically range from 1–5% annually. Register, file the bond, provide required disclosures, and renew annually to keep coverage continuous. Brokers should also keep copies of filings and disclosure documents for easy reference during audits or consumer inquiries.

An Illinois loan broker bond is a compliance bond required by the Secretary of State Securities Department. It guarantees that registered loan brokers follow the Illinois Loan Brokers Act, provide accurate disclosures, and honor obligations. If a broker violates law or fails to pay a valid claim, the surety may compensate harmed parties up to the bond amount, and the broker must reimburse the surety. To understand how surety works, start with our page surety bonds. The bond does not insure the broker; it transfers performance risk to the principal through indemnity, keeping accountability with the business.

Expect an annual premium equal to 1–5% of the bond amount. At $25,000, pricing often ranges from about $250 (1%) to roughly $1,250 (5%) depending on credit, finances, and experience. The $25,000 bond requirement appears in 815 ILCS 175/15‑15 under the Illinois Loan Brokers Act. For statewide context and other Illinois requirements, see Illinois surety bonds. Strong personal credit and established business financials trend toward lower premiums, while newer firms or credit challenges can push rates toward the higher end. Established revenue, time in business, and clean financials tend to lower premiums, while startups or weak credit may trend higher.

Getting bonded is straightforward and mostly online. Begin with the secure online application, receive your quote and approval, pay the premium, and then file the executed bond with the Secretary of State using the official bond form. Keep digital copies with your registration file, and align your bond effective dates with registration so coverage remains continuous. Keep confirmation emails and the original bond in your compliance folder for audits or requests from the Securities Department. Confirm the obligee as the State of Illinois and that the bond form is signed and sealed correctly. Submission mistakes can delay registration or renewal near year‑end.

Yes. Flexible underwriting can make an Illinois loan broker bond accessible even with challenged credit. Underwriters consider the full picture—credit history, business financials, and explanations for past issues. While higher‑risk files may see higher rates, many applicants still qualify, and improvements at renewal can help. For common bonding questions, see more about surety bonds. Ask your agent if timing an updated credit review before renewal could lower your rate when your profile improves. Providing bank statements, tax returns, or a brief explanation of past credit events may aid approval and support clearer, transparent pricing.

Is a bond required for Illinois loan brokers?

Yes. Loan brokers must register and file a $25,000 bond with the Secretary of State (obligee: State of Illinois) under 815 ILCS 175/15‑15 of the Illinois Loan Brokers Act. Use the official bond form to ensure the correct obligee language. The bond supports consumer protection and compliance with disclosures, including those consistent with Truth in Lending Act (TILA) concepts. Keep proof of mailing or electronic filing with your records, and verify receipt with the Securities Department if your approval timeline is tight.

How long is registration effective and when do I renew? 

Registration is effective until January 1 (annual cycle). File renewals timely to avoid lapses, and keep your bond active through renewal. Set reminders 30–45 days ahead of year‑end so the bond, registration, and disclosure documents remain aligned. Maintain copies of your bond form and required disclosure document referenced in 815 ILCS 175/15‑30 for your records. Calendar your renewal tasks with internal checkpoints for bond issuance, fee payment, and disclosure updates so your file is complete before January 1.

Is this the same as a mortgage broker bond? 

No. Illinois loan broker registration and bonding are governed by the Illinois Loan Brokers Act and filed with the Secretary of State Securities Department. Mortgage‑related advertising and licensing are addressed separately; for advertising norms tied to mortgage activity, review 38 Ill. Admin. Code §1050.490. Confirm which statute applies to your business model before filing to ensure the correct license, bond form, and disclosures. If your operation touches mortgage activity, distinct licensing may apply; align your filings carefully to avoid gaps in authorization.

For help across other state requirements or to compare bond types, explore Illinois surety bonds, and if you’re ready to proceed, start the online application. When in doubt, confirm with the Secretary of State before submitting filings to avoid processing delays.

Illinois General Assembly. (n.d.). *Illinois Loan Brokers Act (815 ILCS 175/15‑15).*
https://www.ilga.gov/documents/legislation/ilcs/documents/081501750K15-15.htm

Illinois Secretary of State, Securities Department. (n.d.). *Loan Broker Surety Bond Form (SEC 325).*
https://www.ilsos.gov/publications/pdf_publications/sec325.pdf

Cornell Legal Information Institute. (n.d.). *38 Ill. Admin. Code §1050.490 — Advertising.*
https://www.law.cornell.edu/regulations/illinois/Ill-Admin-Code-tit-38-SS-1050.490

Lance Surety Bonds. (n.d.). *What is a surety bond?*
https://www.lancesuretybonds.com/learn/what-is-a-surety-bond

Lance Surety Bonds. (n.d.). *Surety bond FAQs.*
https://www.lancesuretybonds.com/learn/faqs

Lance Surety Bonds. (n.d.). *Illinois surety bonds.*
https://www.lancesuretybonds.com/bonds-by-state/illinois

Lance Surety Bonds. (n.d.). Online application.
https://www.lancesuretybonds.com/surety-bond-quote