Louisiana Pawnbroker Bond

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Louisiana Pawnbroker Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain a Louisiana Pawnbroker bond.

At a Glance:

  • Lowest Cost: $375 per year or $38 per month, based on the applicant’s credit
  • Bond Amount: $50,000
  • Who Needs it: All pawnbrokers who have a net worth of less than $50,000 operating in Louisiana
  • Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
  • Who Regulates Pawnbrokers in Louisiana: The Louisiana Office of Financial institutions
Louisiana Pawnbroker Bond Form
Louisiana Pawnbroker Bond Form


Louisiana Revised Statute 37:1785 requires all pawnbrokers operating in the state to obtain a license with the Office of Financial institutions before conducting business. The Louisiana legislature enacted the licensing requirement to ensure that pawnbrokers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, pawnbrokers must have a net worth of at least $50,000 or purchase and maintain a $50,000 surety bond to be eligible for licensure.

What is the Purpose of the Louisiana Pawnbroker Bond?

Louisiana requires pawnbrokers who have a net worth of less than $50,000 to purchase a surety bond as part of the application process to obtain a pawnbroker license. The bond ensures that the public will be protected from financial harm if the broker fails to comply with the regulations set forth in Louisiana Revised Statute 37:1787. Specifically, the bond protects the public in the event the broker engages in any acts of fraud or breaches consumer contracts. In short, the bond is a type of insurance that protects the public if the pawnbroker violates the terms of their license.

How Can an Insurance Agent Obtain a Louisiana Pawnbroker Surety Bond?

BondExchange makes obtaining a Louisiana Pawnbroker bond easy. Simply log in to your account and use our keyword search to find the “Pawnbroker” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

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Is a Credit Check Required for the Louisiana Pawnbroker Bond?

Surety companies will run a credit check on the applicant to determine eligibility and pricing for the Louisiana Pawnbroker bond. Applicants with excellent credit and work experience can expect to receive the best rates. Applicants with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.

How Much Does the Louisiana Pawnbroker Bond Cost?

The Louisiana Pawnbroker bond can cost anywhere between $375 to $3,500 per year. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience. The chart below offers a quick reference for the approximate bond cost on the $50,000 bond requirement.

$50,000 Pawnbroker Bond Cost

Credit Score Bond Cost (1 year) Bond Cost (1 month)
720+ $375 $38
625 – 719 $500 $50
600 – 624 $1,250 $125
575 – 599 $1,500 $150
550 – 574 $2,500 $250
500 – 549 $3,500 $350

*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.

Who is Required to Purchase the Louisiana Pawnbroker Bond?

Louisiana requires pawnbrokers who have a net worth of less than $50,000 to purchase a surety bond as a prerequisite to obtaining a pawnbroker license. To paraphrase Louisiana Statute 37:1782, a pawnbroker is a person who issues loans at interest to individuals that leave their property, as collateral, for the broker to sell or purchase goods for resale from a dealer/trader.

In lieu of a surety bond, applicants for a pawnbroker license may choose to submit a financial statement that reflects readily available net assets of at least $50,000. Applicants with a net worth of greater than $50,000 are exempt from the bond requirement.

Louisiana Pawnbroker Bond

BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.

How Do Pawnbrokers Apply for a License in Louisiana?

Pawnbrokers in Louisiana must navigate several steps to secure a pawnbroker license. Below are the general guidelines, but applicants should refer to the Nationwide Mortgage Licensing System’s (NMLS) website or contact the Office of Financial Institutions for details on the process.

License Period – All Louisiana Pawnbroker Licenses expire on December 31st of each year and must be renewed before the expiration date.

Step 1 – Meet the Requirements

To qualify for a license, pawnbrokers operating in Louisiana must meet the following criteria:

    • Be at least 18 years of age
    • Have not been convicted of a felony within the last 10 years
    • Have a net worth of at least $50,000 or purchase a surety bond

Step 2 – Purchase a Surety Bond

Pawnbrokers who have a net worth of less than $50,000 must purchase a $50,000 surety bond.

Step 3 – Submit an Application

All Louisiana Pawnbroker License applications should be submitted online through the NMLS online here. Pawnbrokers must complete the application in its entirety and submit the following items:

    • Surety bond or financial statement
    • Louisiana Occupational License
    • Company formation documents
    • Criminal background check

Pawnbrokers must pay a $750 initial license fee online through the NMLS plus $500 for each additional location and $36.26 for a criminal background check fee. Applicants can view the status of their application online here.

How do Louisiana Pawnbrokers Renew Their License?

To renew their license, pawnbrokers should submit a renewal application via the NMLS online here. All Louisiana Pawnbroker Licenses expire on December 31st of each year and must be renewed before the expiration date.

What are the Insurance Requirements for Louisiana Pawnbrokers?

Louisiana does not require pawnbrokers to purchase any form of liability insurance. Pawnbrokers must purchase and maintain a $50,000 surety bond.

How Do Louisiana Pawnbrokers File Their Bonds?

Pawnbrokers should submit their completed bond forms, including the power of attorney, to the Nationwide Mortgage Licensing System (NMLS) online here.

The surety bond requires signatures from both the surety company, including witness signatures, that issues the bond and from the broker. The surety company should include the following information on the bond form:

  • Legal name of the entity/individual(s) buying the bond
  • Surety company’s name
  • NMLS #
  • NAIC #
  • Bond amount
  • Date the bond is signed and goes into effect

What Can Louisiana Pawnbrokers Do to Avoid Claims Against Their Bonds?

To avoid claims against their bonds, pawnbrokers in Louisiana must ensure that they:

  • Do not engage in any acts of fraud or misrepresentation
  • Do not breach contracts made with consumers

What Other Insurance Products Can Agents Offer Pawnbrokers in Louisiana?

Louisiana does not require pawnbrokers to purchase liability insurance as a prerequisite to obtaining a pawnbroker license. However, most reputable businesses will purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

How Can Insurance Agents Prospect for Louisiana Pawnbroker Customers?

Louisiana unfortunately does not provide a public database of active pawnbrokers in the state. We suggest contacting the Office of Financial Institutions for a list of licensed pawnbrokers. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

Louisiana Pawnbroker Bond