Payday Loans in Indiana

Amount and term limits

Indiana defines the small-loan product beginning at $50, while current DFI guidance limits aggregate small-loan principal outstanding to $825. A lender also may not make a small loan exceeding 20% of the borrower’s monthly gross income, and cannot make one when the borrower already has two or more small loans outstanding.

The due date must be at least 14 days after the money is advanced. The current DFI small-loan pamphlet does not state one universal maximum term, so this dataset does not invent one.

Interest, fees and repayment

Indiana uses a graduated small-loan finance-charge schedule rather than one flat fee percentage. Other amounts generally may not be charged except items specifically authorized by the small-loan law; a returned or dishonored payment charge may not exceed $25 and may be assessed only once for the same item.

Maximum finance charge: 15% of the first $250 of principal, plus 13% of the portion over $250 through $400, plus 10% of the portion over $400 through $825. At $825, the maximum scheduled finance charge is $99.50.

The ordinary small loan has a due date at least 14 days after advance. For the third, fourth, or fifth consecutive small loan with the same lender, the lender must offer an extended payment plan; the plan carries no additional fee and is paid in at least four substantially equal installments over at least 60 days.

Rollovers, refinancing and early payment

Rollover allowed?

No
A lender may not renew, repay, refinance, or consolidate an Indiana small loan using proceeds of another small loan made by that lender. Indiana separately regulates consecutive loans and requires an extended payment plan at specified points.

Prepayment penalty allowed?

No
The borrower may make partial payments in any amount before the due date without charge. The borrower also has a next-business-day cancellation right by returning the amount advanced under the DFI guidance.

Indiana borrower protections

• A small loan may not exceed 20% of the borrower’s monthly gross income, and aggregate outstanding small-loan principal is capped at the current adjusted $825 amount.
• The borrower may cancel by the close of business on the next day the lender is open by returning the amount advanced.
• Partial payments may be made before the due date without a charge.
• Renewing or refinancing a small loan with proceeds of another small loan from the same lender is prohibited.
• The third, fourth, or fifth consecutive loan triggers an offer of an extended payment plan with no added fee; after six total loans with one lender, a seven-day cooling-off period applies.
• Security is limited: the small loan may not be secured by personal property other than the permitted check or electronic debit authorization.

Indiana loan cost calculator

This calculator is an educational illustration based on the structured rules shown on this page. A statutory ceiling is not a typical market price or an offer from a lender.

How to verify a lender in Indiana

Regulator: Indiana Department of Financial Institutions (DFI) — Consumer Credit Division.

Indiana Small Loan License

Verify a lender license

Official sources

1. Indiana DFI — Indiana Small Loan Law: Borrower Rights and Responsibilities (effective Jan. 1, 2025) · primary
2. Indiana DFI — Consumer Credit Policies and Guidance: 2026 IC 37 recodification notice · primary
3. 2026 Indiana Code Title 37 — Consumer Lending / Indiana Uniform Consumer Credit Code · primary
4. Indiana Administrative Code 750 IAC 1-1-1 — UCCC Current Dollar Adjustments · primary
5. Indiana DFI — Consumer Credit Licensing · primary
6. Indiana DFI — Find a License · primary

Last regulatory verification: 2026-09-06. Laws can change; verify current terms and lender status before borrowing. Read our research methodology.