Compare your loan options in Indiana

There are times in life where you might need a loan to get you through an emergency. In Indiana, you’ll be able to borrow up to $550, but first you’ll need to know the regulations lenders must follow so you can avoid falling into a debt cycle.

Can I get a payday loan in Indiana?

Yes, payday loans are legal in Indiana and are goverened by Indiana Code Ann. 24-4-4.5-7-101 et seq.

Four main guidelines lenders in Indiana must abide by:

• Maximum Loan Amount: $550 or 20% of your gross monthly income, whichever is less
• Minimum Loan Term: 14 days
• Maximum Loan Term: None
• APR: 14-day $100 loan is 390%

Costs to consider

Indiana law does allow for financing charges for specific loan amounts. These charges stack depending on how much you borrow based on the percentage rates listed below:

• $50 to $250: 15% of loan amount
• $251 to $400: 13% of loan amount
• $401 to $500: 10% of loan amount

These percentages apply separately to the amounts you borrow. If you take out $300, the first $250 will be charged a 15% interest rate and the remaining $50 will be charged a 13% rate, and so on. This is to prevent lenders from charging extremely high fees for borrowing money.

Lenders may charge a $25 non-sufficient funds (NSF) fee if they unsuccessfully attempt to withdraw funds from your bank account. You can pay this fee via check or a lender may attempt to debit your checking account up to three times.

What will I need to apply?

Eligibility criteria varies between lenders, but you will need to be at least 18 years old, a US citizen or permanent resident and have a regular source of income before applying.

Lenders may need your Social Security number and details about your employment/income in order to process your application. If you apply online, lenders usually need access to your checking account in order to deposit your loan and debit your payments.

3 alternatives to payday loans in Indiana

A payday loan can be a good way to cover the gaps in your budget when an emergency crops up, but because these are high-cost loans, you’ll need to have a solid plan of repayment before you apply.

• Local government assistance. If you have trouble paying for your energy or food costs, you should contact the Low Income Energy Assistance Program or the Community Harvest Food Bank. More information on these and other alternatives can be found here.
• Credit card cash advance. You could withdraw cash from your existing credit card‘s limit. When you withdraw cash from your credit card at an ATM, you’ll be notified of the cash advance fee at that time. It’ll likely be costly, but may be less than the cost of a payday loan.
• Make extra money on the side.Consider a side gig like driving for Uber or taking surveys online to make some extra cash during your spare hours. Although it might not have as high of an hourly rate as your main job, it could provide you with enough funds to avoid a payday loan.

Any more questions about payday loans in Indiana?

• Can I have more than one loan out at once?

  You may have up to two loans, provided they are from different lenders.

• Does Indiana law have a cooling off period between payday loans?

  Yes. After six consecutive loans, you’re required to wait an additional seven days before applying for another.

• Can I rollover or refinance my loan?

  No. Rollovers aren’t permitted in the state of Indiana.

• Can I get a repayment plan?

  If you take out three consecutive loans, your lender is required to offer you a 60-day repayment plan. You pay down your debt in a minimum of four installments at no cost to you. Note that this isn’t the same as a standard installment loan.

• Who do I contact if I want to file a complaint?

  If you wish to report an irregularity or file a complaint about a payday lender you can contact the Indiana Department of Financial Institutions.