Payday loans in Indiana
Licensed lenders in Indiana may issue single-payment small loans (payday loans) secured by a check or account debit, with rules now found in the small loans article of Title 37 of the Indiana Code.
- Payday lending
- Allowed
- Max cost
- $15.00 per $100 borrowed
- Top amount
- The statute sets $550 as the base, which the DFI rule lifts to $825, with a rise to $880 from January 1, 2027.
At that cap, a $100 loan over 14 days can carry $15.00 in fees: $115.00 back in total, close to 391% APR.
Are payday loans legal in Indiana?
Licensed lenders in Indiana may legally offer payday loans under the Indiana Small Loans law, so the answer is yes. You may borrow $50 to $825 now, and the limit goes up to $880 on January 1, 2027. Each loan must run for at least 14 days, and you cannot renew them. On the first $250, lenders may charge 15%, then 13% on amounts from $250 to $400, and 10% on amounts from $400 to $550. Each lender may give you only one loan, and you cannot have more than two small loans total at once.
In Indiana, your total small loan balances must stay at or below 20% of your monthly gross income, which means pay before taxes. After a first loan and three more in a row, the lender is required to offer a free extended payment plan. You may request this plan to divide your balance into at least four equal payments spanning at least 60 days. Before signing, look at the list of licensed lenders from the Indiana Department of Financial Institutions to make sure the company holds a license.
- On July 1, 2026, Indiana moved its payday (small loan) rules into a new Title 37 from IC 24-4.5-7, keeping the substance the same.
- Loan size determines fee tiers: the first $250 costs 15%, while higher bands cost 13% and 10%.
- The statute sets the maximum loan at $550, while the DFI rule raises it to $825, and inflation indexing will lift it to $880 from January 1, 2027.
- Borrowers cannot have total small loan balances exceeding 20% of their monthly gross income.
- Following five consecutive loans after the first, you must wait 7 days, and lenders must offer a free extended payment plan after the third consecutive loan.
Indiana payday loan laws
- Law in force
- Indiana Small Loans law (IC 37-3, which replaced IC 24-4.5-7)
- Cited as
- Ind. Code 37-3 (moved from Ind. Code 24-4.5-7 as of July 1, 2026)
- Fees under the law
- On the first $250, the fee is 15%, then 13% on amounts over $250 up to $400, and 10% on amounts over $400 up to $550 (the $550 cap adjusts for inflation).
- Most you can borrow
- The statute sets $550 as the base, which the DFI rule lifts to $825, with a rise to $880 from January 1, 2027.
- How long a loan runs
- 14 days
- Rollovers
- You cannot renew these loans.
- Cooling-off gap
- Once the fifth consecutive small loan after the first one is paid in full, wait 7 days.
- Loans you can hold at once
- You cannot get a new loan if you already have two or more small loans outstanding, and each lender allows only one loan.
- Repayment plan
- after an initial loan and three back-to-back loans, the lender has to offer an extended plan with 4 or more equal installments across at least 60 days
- Installment lending limits
- IC 37-2-4-35 sets supervised loan rates at 36% yearly for the first $2,000 of principal, 21% for $2,000 to $4,000, and 15% beyond that (dollar bands inflation adjusted).
Also checked against law.justia.com. Full statute text.
Online lenders that list Indiana
Nine companies we track say they lend in Indiana: 3 online installment lenders and 6 tribal lenders.
| Lender | Kind | Posted APR |
|---|---|---|
 NetCredit | Installment | 34.99% to 99.99% |
 OppLoans | Installment | 99% to 195% |
 Rise Credit | Installment | 60% to 299% |
Tribal loans in Indiana
Rules on fees and terms for small loans in Indiana apply to both licensed and unlicensed lenders (IC 37-3-3-11), and offering such loans requires a DFI licence (IC 37-3-1-1). If a lender violates these rules online or otherwise, they cannot collect principal, interest, or other charges, and must pay the borrower $2,000 per violation along with damages, costs, and attorney's fees.
On the immunity claim tribal lenders make, see are tribal loans legal.
Six tribal lenders we track list Indiana as a state they lend in. Three of the six publish an APR, from 73.7% to 725%.
| Lender | Posted APR |
|---|---|
 Mobiloans | 73.7% to 405% |
 Spotloan | 99% to 490% |
 BrightLending | 325% to 725% |
 MaxLend | Not published |
 Minto Money | Not published |
| American Web Loan | Not published |
Need cash in Indiana? Ask about cheaper routes
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Lender cases and orders in Indiana
- 2025 · US District Court, Southern District of IndianaLendumo: A lawsuit titled Taylor v. Niswi: a borrower brought suit against Niswi, trading as Lendumo, LDF Holdings and others; the defendants asked the court to force arbitration. Source
- 2024 · US District Court, Southern District of IndianaUprova: The case known as Walton v. An Indiana borrower brought a class suit over a $1,100 Uprova Credit loan at 335.43%. It cited state usury law and RICO; the court required individual arbitration instead. Source
Indiana and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| Indiana | Allowed | $15.00 per $100 borrowed | The statute sets $550 as the base, which the DFI rule lifts to $825, with a rise to $880 from January 1, 2027. |
| Illinois | Banned | 36% APR | None allowed |
| Kentucky | Allowed | $15.00 per $100 borrowed | All open deferred deposit transactions together may not exceed $600 in total proceeds (the figure moves with CPI each year and can never pass $850). |
| Michigan | Allowed | $15.00 per $100 borrowed | Each transaction allows a maximum of $600. |
| Ohio | Only as installments | None in the law | Each loan is limited to $1,000, and the total outstanding short-term principal for one borrower cannot exceed $2,500. |
Indiana loans with no credit check
Installment loan rates: IC 37-2-4-35 sets supervised loan rates at 36% yearly for the first $2,000 of principal, 21% for $2,000 to $4,000, and 15% beyond that (dollar bands inflation adjusted).
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in Indiana
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the Indiana Department of Financial Institutions (DFI), Consumer Credit Division.
- Had trouble with a lender? Report the lender.
Sources for Indiana
- The fee for the first $250 of a small loan cannot exceed 15% of principal.; Principal for a small loan runs from $50 to $550 (amount subject to inflation adjustment).; The shortest term allowed is 14 days.iga.in.gov
- For the portion from $250 to $400, the fee is capped at 13%.; For the portion from $400 to $550, the fee is capped at 10%.law.justia.com
- The small loan principal limit is $825 under the DFI dollar amount rule.law.cornell.edu
- The adjusted small loan principal limit becomes $880 beginning January 1, 2027.; Beginning January 1, 2027, the adjusted amounts in IC 37-3 take effect.iar.iga.in.gov
- A 7-day wait applies after five consecutive loans that follow the initial loan.; Borrowers receiving an extended payment plan get at least 60 days to pay via 4 equal installments or more.law.justia.com
- Borrowers with two or more small loans outstanding cannot receive a new loan.law.justia.com
- Effective July 1, 2026, Senate Bill 169 recodified the small loan rules into a new Title 37.iar.iga.in.gov
- For supervised (installment) loans, the rate on the first $2,000 of principal is capped at 36% per year.iga.in.gov
- The Consumer Credit Division within DFI oversees payday lenders.in.gov
- A list of licensed small loan lenders is published by DFI.extranet.dfi.in.gov
- DFI handles complaints about DFI-licensed entities.in.gov