Overview
A supervised lender bond is the surety bond required in states that license higher-rate consumer lending under a supervised loan or supervised lender statute, a structure common in states that adopted the Uniform Consumer Credit Code. The bond guarantees that the lender will follow that state's supervised lending law, including its rate ceilings, disclosure rules, and collection limits.
State regulators set the required amount. Because the license covers higher-rate consumer credit and the bond guarantees compliance, underwriting reviews the owners' credit and the company's financial strength.
It is a surety bond that protects borrowers and the state. A borrower or regulator harmed by a violation can claim against the bond, and the lender reimburses the surety under the indemnity agreement.
Who needs this bond
Companies licensed as supervised lenders in states (often those that adopted the Uniform Consumer Credit Code) that require a bond as a condition of the license.
Typical amount and term
Bond amount is set by each state's regulator. Premium runs 1 to 3 percent of the bond amount for well-qualified lenders. Term is usually one to three years.
What this bond costs
Your premium is a small percentage of the bond amount, set by underwriting. The biggest drivers:
- The state-set bond amount
- The owners' personal credit
- The company's financial statements and time in business
- The number of states licensed
| Scenario | Bond amount | Estimated premium |
|---|---|---|
| Established lender, strong credit | $25,000 bond | around 1 to 2 percent per year |
| Multi-state lender | $50,000 bond | around 1.5 to 3 percent per year |
| Newer lender, limited history | $25,000 bond | rate is higher until a track record is built |
Figures are illustrative premium ranges, not quotes or statutory amounts. Your rate depends on the bond amount your obligee requires and your underwriting profile.
What you will need
- State of license and license or application number
- Two years of business financials
- Owner credit authorization
How to apply
- Send your state, license type, and the required bond amount
- Receive a per-state quote within one business day
- Sign and pay, then we file the bond with the regulator
How a surety bond differs from insurance
A supervised lender bond is a surety guarantee that protects borrowers and the state, not the lender. It is separate from insurance on the company's own losses. The bond backstops compliant lending, and the lender repays the surety for any paid claim under the indemnity agreement.
Frequently asked questions
What is a supervised lender?
In states that use the Uniform Consumer Credit Code, a supervised lender is licensed to make higher-rate consumer loans above a set rate threshold. The license carries a surety bond as a condition.
How is the bond amount set?
By each state's regulator, so the required amount varies from state to state.
Do I need a bond in every state?
Generally yes. The bond is tied to each state license, so a multi-state lender posts a bond in each one.
What drives the premium?
Mainly the bond amount, the owners' credit, and the company's financial strength. The figures here are illustrative, not a quote.
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Reviewed by the Cornerstone Surety bond team. Last reviewed 2026-06-17.