Indiana Payday Loans

Ind. Code §§ 24-4-4.5-7-101 et seq.
Status: Legal

Payday loans are legal in the state of Indiana, pursuant to Ind. Code §§ 24-4-4.5-7-101 et seq.  There are currently 501 companies in Indiana offering payday loan services, the basic loan terms including a loan amount of up to $550 to be repaid within a minimum of 14 days.

Payday Loan Lending Laws in Indiana

While a potential borrow can request up to $550, the requested amount cannot exceed 20% of the borrower’s monthly gross income.  The finance charge for a $100 payday loan for 14 days is $15. The state also limits the number of open loans to two at one time, one loan per lender, and extensions are not allowed. The interest rates start at 15% for the first $250; 13% for $250.01 to $400; and 10% for $400.01 to $500.  Additionally, a nonsufficient fund fee can be charged by the lender only one time and the amount must not exceed $20, although some additional charges may also be applicable if there is any such specific clause already disclosed in the loan contract.

Payday loan usage in Indiana is prevalent, with Indianapolis offering an estimated 90 payday loan stores alone.  As such, the cooling-off period and borrowing time frames give potential borrowers a bit a breathing room should they have need of it.  After three consecutive loans have been made to a borrower, the lender must offer an extended repayment plan of at least four equal installments at no additional cost to the borrower.  Additionally, if a borrower has already taken six consecutive loans, the lender must wait for at least seven days before approving another cash advance to him or her.  These regulations provide potential borrowers some safety against falling into a debt cycle, but care should still be taken when considering the use of short term loans.  While a lender cannot charge a delinquent lender with criminal action, they can file a civil suit against the borrower, the punishment being decided by a judge.  However, a lender cannot garnish wages or force repayments from a delinquent borrower unless they have a court order in place.

Process

To apply for a payday loan in Indiana, a potential borrower must meet these requirements:

  • Be at least 18 years old
  • Be employed for at least one month.
  • Have an active checking account
  • Be a U.S. citizen or permanent resident.

Lending Rules*

Lenders in the state of Indiana are legally required to comply by the following limitations according to Ind. Code §§ 24-4-4.5-7-101 et seq.:

Maximum Loan Amount:
$550 (not to exceed 20% of borrower's monthly gross income)
Minimum Length of Loan:
14 days
Maximum Finance Rate & Fees:
15%: $0-$250; 13%: $251-$400; 10%: $401-$500
Finance Charge for 14-day $100 Loan:
$15
APR for 14-day $100 Loan:
390%
Max # Outstanding Loans at One Time:
One per lender; Two total
Rollovers Permitted:
None (cannot renew, repay, refinance or consolidate)
Repayment Plan:
After 3 consecutive loans, lender must offer an extended payment plan of at least four equal installments at no additional cost
Collection Fees:
One $25 NSF fee; additional charges may apply when check or authorization to debit was used to defraud another
Criminal Action:
Prohibited
*The information displayed may not be current. For the most recent information, please visit http://www.paydayloaninfo.org/state-information/22.

Regulatory Information

If you have a complaint against a Indiana Cash Advance location you can contact your state regulator below:

Regulator:
Indiana Department of Financial Institutions
Address:
30 South Meridian Street, Suite 300 Indianapolis IN 46204
Phone:
(800) 382-4880
Website:


Indiana Lenders

Below you can find Indiana payday loan lenders in the following cities:

Indiana Statistics**

The following information is key demographic data for the state of Indiana from the Census bureau.

Total Population:
6,633,053
Median Household Income:
$49,255
Poverty Rate:
14.5%
Median Gross Rent:
$745
High School Graduate or Higher:
87.8%
Bachelor's Degree or Higher:
24.1%
**The information displayed may not be current. For the most recent information, please visit http://www.census.gov/quickfacts.

Borrow Safely, Borrow Responsibly

Although state regulations prohibit lenders from pursuing criminal actions against a delinquent borrower, it would be unwise for a borrower to assume there are no other hazards involved with the irresponsible use of cash advance loans.  While an effective way to address short-term financial emergencies, long-term problems could occur if the loans are not repaid.  As such, borrowers should familiarize themselves with the state lending regulations and the terms of service offered by a lender before committing to a payday loan.

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