Indiana Payday Loan Laws Details
The data provided here is for general informational purposes and should not be used as legal reference. If you have questions regarding Indiana payday loan laws contact the Indiana Department of Financial Institutions.
Payday loans are legal in Indiana (see Indiana Payday Loans or Indiana Installment Loans to compare fees and requirements for individual lenders).
| Feature | Specification |
|---|---|
| Amount (max) | $550 (not to exceed 20% of borrower's monthly gross income) |
| Rates or Fees (max) | 15%: $0-$250; 13%: $251-$400; 10%: $401-$500 |
| Term Limitations | Min: 14 days |
In Indiana, no rollovers are permitted (cannot renew, repay, refinance or consolidate). The cooling period between loans is 7 days after 6 consecutive loans. Indiana borrowers, after 3 consecutive loans, must be offered by the lender an extended payment plan of at least four equal installments at no additional cost.
For example, in Indiana the rates and fees on a 14 day, $100 loan are:
| Terms | Amount |
|---|---|
| Loan Amount | $100 |
| Fees | $15 |
| APR | 390% |
Indiana also defines regulations around collections. If available, the table below lists the fees lenders are permitted to charge if the loan is not repaid and/or whether a lender can threaten use of or use criminal action if a borrower is unable to repay a loan.
| Feature | Specification |
|---|---|
| Collection Fees | One $25 NSF fee; additional charges may apply when check or authorization to debit was used to defraud another |
| Criminal Action | Prohibited |
Finance charges on the first $250 of a small loan are limited to 15 percent of the principal. Finance charges on the amount of a small loan greater than $250 and less than or equal to $400 are limited to 13 percent of the amount over $250 and less than $400. Finance charges on the amount of the small loan greater than $400 and less than or equal to $500 are limited to 10 percent of the amount over $400 and less than $500.