Payday Loan Laws


An Indiana Senate committee rejected proposed changes to a financial industry bill.

The Senate's Insurance and Financial Institutions Committee voted 6-2 to defeat an amendment that would have allowed payday lenders to offer six-month loans of up to $1,000 at an annual percentage rate of 180 percent. Current state law caps interest rates at 36 percent for installment loans under $2,000.

After rejecting the amendment, the panel unanimously approved the bill's existing language calling for a legislative committee to study lending issues over the summer. Committee chairman Sen. Travis Holdman, R-Markle, said after the hearing that lawmakers "need to stand back and take a look at this."

Jabo Covert, a vice president of Check Into Cash, had urged the panel to approve the amendment, saying the payday loan industry expects the Consumer Financial Protection Bureau to soon issue "very stringent regulations" targeting the industry. He said those new rules could prohibit his company, which has 66 outlets in Indiana, from making most of the loans it currently makes in the state.

Read more here:

Indiana Payday loan laws. Indiana Payday loan legislation.

Indiana has specific payday advance laws. 15% on the first $250; 13% on amounts greater than $250 up to and including $400; 10% on amounts greater than $400 up to and including $500.

Minimum term of 14 days. Maximum amount of payday loan is $500 but cannot exceed 15% of the monthly gross income, including fees. Rollovers are prohibited (if a loan is paid in full, it is not a rollover.

For a thorough discussion of the payday loan industry and access to our payday loan training materials, we recommend you proceed to Payday and Paycheck

Indiana Payday Loan Laws & Legislation State Information

Legal Status: Legal

Ind. Code Ann. ยง 24-4-4.5-7-101 et seq.

Loan Terms:
Maximum Loan Amount: $550 (not to exceed 20% of borrower's monthly gross income)
Loan Term: Min: 14 days
Maximum Finance Rate and 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%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: One per lender; Two total
Rollovers Permitted: None (cannot renew, repay, refinance or consolidate)
Cooling-off Period: 7 days after 6 consecutive loans
Repayment Plan: After 3 consecutive loans, lender must offer an extended payment plan of at least four equal installments at no additional cost

Collection Limits:
Collection Fees: One $20 NSF fee; additional charges may apply when check or authorization to debit was used to defraud another
Criminal Action: Prohibited Regulator: Indiana Department of Financial Institutions
Address: 30 South Meridian Street, Suite 300 Indianapolis IN 46204
Phone: (800) 382-4880
Regulatory Contact: Mark Tarpey,, Supervisor, Consumer Credit
Regulator Website

Licensee Database

Online Resources:
Indiana Small Loan Law Borrower Rights and Responsibilities

Small Loan Finance Charges