Indiana Loan Rules: User Instructions

Payday Loan Process in Indiana

Last Revised 04/04/2020
A payday loan is a fast, legal and, contrary to what used to be believed a short while ago, economically healthy way to pick up some budget slack. Like so many things nowadays, it can be done both online and at an actual office. So which is best?

Companies go from bricks to clicks for a good reason: it is way more convenient this way. When applied to online, payday loans are far less taxing on your time, efforts, and sometimes money as well, for you are presented with an elaborate choice of lenders that professional loan finder systems analyze and offer automatically. More to the point, when borrower’s physical presence is not required, it means that no deposit is either. Documents confirming borrower’s identity and employment are either emailed or faxed, and the decision is made within a matter of a few hours, but most services make it under one hour.

At this day and age, applying for an online payday loan benefits users in a major way, all thanks to the intense competition within the industry. This means reduced cost of such economical tools, better terms, more diversified offers, etc. Still, some borrowers find it more convenient applying for a loan at the company’s office – which is naturally only feasible when there is one in the vicinity. Like with most things, doing it online or offline is subject to change based on the circumstances and individual preferences.

Indiana Payday Loan Laws and Regulations

The rules of payday loans issuing in the state of Indiana are regulated by statutory citation 24-4.5-7-101 et seq. According to this document, the loans to individuals can be issued in the amounts ranging between $50 and $550 for a period of time no less than 14 days. Finance charges for the sums borrowed are given below:

  • 15% of the principal for loans under or equal $250

  • 13% of the principal for loans raging between $250 – $400

  • 10% of the principal for loans raging between $400 – $500

See, also Senate Bill 104

Indiana Consumer Protection

There exist further tools for protecting Indiana borrowers from lenders’ taking advantage:
1. The demand to offer extended payment plans for borrowers of 3 consecutive loans;
2. Prohibition of rollovers, extensions, refinancing or lender consolidations;
3. A limit of 2 loans per individual issued by different lenders;
4. A 7 days’ hiatus between sixth and seventh loans called “cooling off period”

Today, borrowers of payday loans are protected by the legislature from lenders operating in bad faith. The business has become an “eco-friendly” concept not unlike renting cars or tools. With state legislature explicitly and rigidly defines the norms of payday loans issued online or offline, any nasty suddenness is taken out of the equation. Borrowers regain peace of mind knowing that there is no hidden catch of a fine print to the entire process, and their best interests are taken care of on the highest level. There is no longer need for anxious search of a lender among family or friends – a huge step from what the situation used to be like some 10 years ago.

Virtual payday loan lending offices add a layer of convenience. No need to leave your work place or make time for a visit to the office of the lender company. No need to collect hard copies of documents from a bunch of different institutions, and no need for a deposit to be made. Safe for certain very specific occasions, online payday loan services beat offline vendors of the same services any day of the week.