Indiana Payday Loan Laws and Regulations

Find out if quick short-term Payday Loans are legal in Indiana. Learn what amounts, interest rates and repayment terms are set by the state's Legislation.

Legal Payday Loans Online for Indiana residents Apply online

Indiana Payday loans Rates and Terms

Legal Status

Legal Status

The status of a loan type according to the Federal laws and regulations. What concerns Payday Loans some states consider them legal, some – illegal and some restrict them in terms of amounts and interest rates.

Maximum Loan Amount

Maximum Loan Amount

It’s the maximum sum of cash advance allowed to apply for in the state. It usually ranges from $500 to $1000. But it may vary depending on the lender and his requirements.

Minimum Loan Amount

Minimum Loan Amount

It’s the minimal amount of cash advance you can apply for. It’s not always stated, the average sum is $100. But it may vary depending on the lender and the state’s regulations.

Maximum Loan Term

Maximum Loan Term

It’s the maximum period of time within which you are to allowed to pay off your loan.

30 day(s)
Minimum Loan Term

Minimum Loan Term

It’s the minimum period of time within which you are allowed to pay off your loan.

14 day(s)
Maximum APR

Maximum APR

The maximum percentage allowed that actually represents annual cost of your loan. The APR is based on several things, including the amount you borrow, the interest rate and costs you’re being charged, and the length of your loan.

Finance Charges

Finance Charges

All the payments you’re going to be charged for the loan including APR and other fees.

$15 for $100 borrowed for 14 days

Make yourself safe by studying Indiana laws, rules and regulations concerning Payday Loans and other short-term cash advance. 

Table of Contents:

Are Payday Loans legal in Indiana?

Indiana Payday Loan Terms and Amounts

Indiana Payday Loans online laws

Indiana Payday Loans interest rates, fees and other finance charges

Indiana Payday Loans direct lenders regulations

Indiana Payday Loans consumer information

Legitimate Payday Loans online with NO credit check in Indiana

Does Indiana law allow Payday Loans for bad credit borrowers?

Legit Payday Loans in Indiana collection practices

Indiana Payday Loans news  - latest changes

Indiana Payday Loans historical background

Indiana Payday Loan alternatives

Are Payday Loans Legal in Indiana?

Short-term Payday Loans in Indiana are Legal according to Ind. Code Ann. § 24-4.5-7-101 et seq.. These documents cap the maximum finance charges at maximum 390.00% APR. The repayment terms range from 14 day(s) to 30 day(s).

Indiana Consumer Credit Division Advisory Letter.pdf

Besides, there are other loan options available to cover your urgent expenses fast such as Installment Loans in Indiana and Personal Loans in Indiana.

For other details and information on Payday Loans in Indiana contact Indiana Department of Financial Institutions, 30 South Meridian Street, Suite 300 Indianapolis IN 46204, Phone: (800) 382-4880.

Indiana Payday Loan Terms and Amounts 

Indiana residents who are eligible for a Payday Loan can get maximum $605 per contract. The repayment term is 14 - 30 days.

However, there are no specifications on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for a Payday Loan in Indiana.

If a Payday cash advance is not enough, there are always other options to receive the necessary funds in Indiana:

  • Unsecured Installment Loans,
  • Bad Credit Personal Loans,
  • Title Loans,
  • Check Cashing,
  • Pawn Shops, etc.

Indiana Payday Loans online laws 

Payday loans from both storefront and online lenders are legal in the state of Indiana. But the companies should operate according to the Indiana Department of Financial Institutions, 30 South Meridian Street, Suite 300 Indianapolis IN 46204, Phone: (800) 382-4880 regulations.

Reputable online lenders operating in accordance with all relevant state and federal laws can be applied to and compared on our platform using a simple online application form.

You state the necessary amount, fill in your personal information and get suitable offers from legit direct lenders. It takes only a few minutes and doesn't affect your credit score. 

Indiana Payday Loans interest rates, fees, and other finance charges 

The main part of the payday loan payment is mostly made up of the interest rate, or APR. The maximum APR that may be charged for short-term cash advance in Indiana is 390.00%. On average the interest rate is 582%.

Besides, the total cost of a Payday Loan includes some additional fees. All the lenders operating in the state of Indiana can charge nor more than $15 for $100 borrowed for 14 days for a 14-day $100 loan. And additional fees are 15%: $0-$250; 13%: $251-$400; 10%: $401-$500. So, the loan will approximately cost a borrower $15 for $100 borrowed for 14 days. 

The law obligates Indiana Payday Loan lenders to provide you with a written disclosure of all the rates and fees in the understandable language. You should read them carefully and if you agree acknowledge the notification by signing the contract.

Indiana Payday Loans direct lenders regulations 

According to Indiana payday loan laws all direct lenders are obliged to register their companies which will allow issuing payday loans contract. It concerns both Online Payday Loans and Payday Loans Near Me.

Under current law, Chapter 3 of Indiana’s Uniform Consumer Credit Code allows lenders to make consumer loans with interest rates up to 36% for smaller loans, and significantly lower interest rates for larger loans.1 In addition to the interest, a consumer loan can include a $50 origination fee (termed a nonrefundable prepaid finance charge), plus fees for ancillary products such as credit insurance.

Indiana Payday Loan lenders are prohibited to threaten you for late payments or loan defaults and conduct any criminal actions against you.

Nevertheless, you should be careful not to come across any scams. Some unfair lenders can operate without license or under a different license and offer too expensive ‘payday loans’ under illegal conditions. Always check that the lender you are going to apply to works under Indiana state law.

Compare top legit Payday Lenders in Indiana:

Indiana Payday Loans consumer information 

Besides amounts, rates and fees, consumers must be also well aware of other details of Payday Loans in Indiana. They include the availability and number of rollovers, extensions and repayment plan, a cooling-off period, any default penalties or additional fees, etc. Check out the table below to find the most essential information:

Rollovers or extensions Extended repayment plan of at least four equal installments over at least 60 days at no additional cost
Cooling-off period 7 days after 6 consecutive loans
NSF fee $25 NSF fee
Criminal actions Prohibited

Look for more detailed information on the official Indiana state regulator website - Indiana Department of Financial Institutions, 30 South Meridian Street, Suite 300 Indianapolis IN 46204, Phone: (800) 382-4880,

Legitimate Payday Loans online with NO credit check in Indiana 

Looking for a legal Payday Loan with No credit check in Indiana? You must understand the meaning of this phrase correctly at first. No credit check implies that a lender will not inquire about your credit history information from or send your borrowing data to any of the three major credit bureaus Equifax, Experian and TransUnion.

If you don’t want to damage your credit history, Indiana law allows you to apply for a Payday Loan with No credit check. But you should understand that a lender needs to check your creditworthiness at least in some way. He can perform a soft credit check when a lender pre-approves you for a loan and this inquiry will not appear on your credit report. Or there’re other ways to prove you can afford the cash advance. Payday Loan lenders use the tracking system to verify your debts, check your income, etc. And generally, they charge higher interest to lessen the risks.

Indiana Payday loans online no credit check are one of the easiest options of getting quick cash to cope with emergency financial requirements, especially for the people with poor credit.

Does Indiana law allow Payday Loans for bad credit borrowers?

The average credit score in Indiana is 667, placing it in the good range. But it doesn't mean that those who have a worse credit can't apply for a Payday Loan in Indiana. 

  • First of all, there're a lot of legit direct lenders in Indiana providing Payday cash advance to borrowers with both good and bad credit score.
  • Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
  • Find out how to improve your credit score and do your best to do it fast. 
  • Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.

Legit Payday Loans in Indiana collection practices 

If you can’t repay the loan amount plus interest on a due date it means you default the loan. When Indiana direct lender isn’t able to cash your check after the repayment term is over he may charge you an NSF fee. NSF fee means there are non-sufficient funds on your account. Non-sufficient funds fee should not exceed $25 NSF fee.

What concerns collection practices, first of all, you may stay assured that any criminal actions are forbidden in Indiana. The laws limit the collection actions lenders can take. Besides only 2.00 loans are allowed to be taken out at a time, and rollovers and extensions are limited by Extended repayment plan of at least four equal installments over at least 60 days at no additional cost.

If you think that your payday lender violates the Indiana Payday Loans law, you may file a written complaint with Indiana Department of Financial Institutions, 30 South Meridian Street, Suite 300 Indianapolis IN 46204, Phone: (800) 382-4880. The supervisor from that office interviews witnesses reviews the payday lender’s business records and documentation, and determine whether to pursue civil or criminal charges.

Indiana Payday Loans news  - latest changes 

A new bill was proposed by the Senate. It would expand "predatory" loan products. If approved by the Indiana House, Senate Bill 613 would allow new loan products that would be considered criminal loansharking under current state law. The interest rates limit would increase. But there's still much opposition to such changes.

Indiana Payday Loans historical background 

The history of Payday Loans in Indiana
1973 The interest was capped at 72%.
1990s Payday Loans were firstly introduced in the state.
1993 Payday lending became regulated by The Indiana Department of Financial Institutions.
2002 36% interest cap was canceled.
2006 Military loans were limited to 36% APR.
June 2, 2016 The Consumer Financial Protection Bureau (CFPB) proposed a Payday Loan Rule that hasn’t yet fully come into effect (the federal rule is expected in November 2020).
2018 An attempt to raise the minimum loan amount was made.
2018 There was an attempt to increase loan limits and temrs but unsuccessfully.
2019 An attempt to limit the APR at 36% failed.
April 2019 The most recent bill, SB 613, passed the Senate but died in the House.

Indiana Payday Loan alternatives 

If you're looking for instant cash advance in Indiana but not a Payday Loan, consider other alternative ways to get the necessary funds:

  • Apply for an Indiana Installment Loan - $1000 - $5000 cash advance repaid over several months or years in equal installments.
  • Take out a Car Title Loan if you own a vehicle to use as collateral.
  • Sell some of your valuable stuff online or at a pawn-shop.
  • Consider borrowing from a bank or credit union, Indiana Central Credit Union, for example.
  • Qualify for one of Federal or Indiana government assistance programs: Indiana Children's Health Insurance Program (SCHIP), Indiana Food Stamp Program Indiana Head Start, Indiana Low Income Home Energy Assistance Program (LIHEAP), Indiana Medicaid and many others depending on your needs.

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