Midwest · Allowed
Payday loans in Indiana
Storefront payday lending is permitted in Indiana. State law caps what lenders can charge — the limits below are the legal ceiling, and honest lenders stay under it.
The limits below are the legal ceiling — any offer above them is being made outside the law.
The rules behind the numbers
A small loan is not intended to meet long term financial needs. A small loan should be used only to meet short term cash needs.
In practice: borrow $300 for a standard term and the finance charge is $44 — $344 repaid at the end, about 382% APR. Every compliant lender in Indiana has to fit inside that schedule.
Statute: Ind. Code § 24-4.5-7-101 et seq.
Regulator: Indiana Department of Financial Institutions · www.in.gov
Questions people ask here
How much can a payday loan cost in Indiana?
State law caps fees at 15% on first $250, 13% on $250-$400, 10% on $400-$550. On a typical $300 loan that works out to about $44 in finance charges — repaying $344 in total. A lender charging more than the cap is operating illegally.
What happens if I can't repay on time in Indiana?
This state's rules on rolling the loan over: forbidden. If you can't pay, ask the lender for an extended payment plan before you renew — and call the state regulator if the plan is refused.
Are online payday lenders legal in Indiana?
Only lenders licensed in Indiana may make loans to residents at these terms — the license, not the website, decides what's legal. Out-of-state lenders offering terms above the state cap are operating outside the law.
Who regulates payday lenders in Indiana?
Complaints about a licensed lender go to the Indiana Department of Financial Institutions (www.in.gov) — keep the loan agreement and every fee disclosure you were given.
96 storefront lender locations listed statewide in the 2022-02-20 public directory snapshot — each city guide carries its local list.