A payday loan could help residents of Indianapolis through a rough financial situation.
Whether you need a payday loan because of an unexpected bill or a problem with your budget, if you’re considering getting a payday loan and live in Indianapolis, go through this guide first so you have the right information before applying.
Are payday loans legal in Indianapolis?
Payday loans are legal throughout Indiana, but the process of borrowing can be complicated because of Indiana’s laws. You can borrow up to $550 or 20% of your income, whichever is less, for at least 14 days. However, depending on the amount you borrow, your financing fee will differ.
Read your contract carefully to learn about the total cost of your individual loan.
Compare these lenders if you’re looking into a short-term loan in Indianapolis
Why you might consider a payday loan in Indianapolis
- Long minimum loan term. Unlike some states where there is no minimum loan term or it’s set at seven days, Indiana has loan terms of at least 14 days. This is to help give consumers more time to pay back the loan in full.
- Limits to the number of outstanding loans. Indiana law states that you can’t have more than two loans borrowed at any time, and both must be from separate lenders.
- There are repayment plans available. After three consecutive loans, your lender is required to offer you an extended payment plan at no extra cost. This way, you can repay the loan in four equal installments and avoid any extra fees that might come with taking out another loan.
Amanda needs to pay for a car repair
After a recent car accident, Amanda needed to get her car repaired. Unfortunately, she didn’t have the money at the time and her next payday was nearly two weeks away. Without her car, she wasn’t able to get to work, but her bad credit meant she didn’t qualify for a personal loan from her bank. She figured applying for a payday loan was her only option, so she hopped online and found a short-term lender.
She was approved for $550. Before signing, Amanda read the contract and made sure she liked the terms. The loan was due in 14 days and her fees were calculated to be $75. She agreed to the terms, and the money was transferred into her account the next business day.
In two weeks, the $625 was debited from her checking account. The payment went through without any problems, and Amanda was able to have her car repaired without spending too much extra in fees.
How can I apply for a payday loan?
All lenders have different eligibility criteria, but you’ll usually have to be a US citizen or permanent resident, have a regular source of income and be at least 18 years old.
When you decide on a lender, either from the list above or by visiting a local store, you’ll need to be prepared to submit some personal information. This includes your name, Social Security number and your current employment situation. Lenders will also want to know your gross monthly income and if you have an operational checking account.
Short-term lenders near you in Indianapolis, Indiana
Where to go to get a short-term loan in Indianapolis
- Check into Cash. 3502 W 86th St, Indianapolis, IN 46268
- A-1 Cash Advance. 8504 E Washington St, Indianapolis, IN 46219
- Check Cash. 9940 Pendleton Pike Suite A, Indianapolis, IN 46236
How much will a payday loan in Indianapolis cost?How much a lender can charge you in the form of a financing fee depends on how much you want to borrow.
- $50 to $250. 15%
- $251 to $400. 13%
- $401 to $500. 10%
These charges stack. For instance, if you want to borrow a loan of $300, the first $250 will be charged a financing fee of 15% while the remaining $50 will be charged at 13%. This brings your total to $51.50 in fees.
If you want to borrow $450, the first $250 will be charged at 15%, the next $150 will be charged at 13% and the remaining $50 will be charged at 10%. Your total fees then would be $69.50.
All lenders are required to outline the total cost of your loan, so check your contract carefully to see how much you’ll end up paying back on the due date.