Payday loans in Indiana: the rules and your way out

Indiana's rules, line by line

Largest loan

$825 (CPI-adjusted figure in the DFI brochure dated January 1, 2025, still in the July 1, 2026 brochure), counting all of a borrower's loans with that lender. A loan also may not exceed 20% of the borrower's gross monthly income.

Shortest term

14 days. The due date must be at least 14 days after the money is advanced.

Fee or rate cap

Finance charge of no more than 15% of the first $250, 13% of the amount over $250 up to $400, and 10% of the amount over $400 up to $825 (e.g., $30 on $200, $44 on $300, $99.50 on $825). No other charges except the dishonored-payment fee.

Renewals and rollovers

Prohibited. A lender may not renew, repay, refinance or consolidate a small loan with the proceeds of another small loan from that lender.

Waiting period between loans

7 days after a borrower has had six loans with one lender (an initial loan followed by five consecutive loans). A 'consecutive small loan' is one made within 7 days after the previous loan is paid in full.

Loans at once

1 with the same lender. A lender may not lend to a borrower who already has 2 or more small loans outstanding with any lenders.

Payment plan if you cannot pay

Yes, at no extra cost. The lender must offer an EPP when the borrower enters a third, fourth or fifth consecutive loan. The borrower may ask for an EPP at any time during the term of a third or later consecutive loan if not in default and after the cancellation window has passed. No additional fees may be added. While on an EPP the borrower cannot take another small loan from any lender until the EPP is paid in full. The brochure does not state the number of installments.

State loan database

Yes. DFI's 2009 advisory states that each loan made by a licensee is entered in the Veritec database under the borrower's Social Security number or TIN.

Limits on collection

One charge of up to $25 for a dishonored check or debit, collected only once however many times the item is presented. The lender may not threaten or begin criminal proceedings if the borrower's check is returned unpaid. Security is limited to one check or debit authorization, no larger than the amount advanced plus permitted finance charges. No other personal property may secure the loan, and the borrower does not have to give a PIN.

Other rights

Right to cancel by the close of business on the lender's next business day by returning the amount advanced. Partial payments in any amount before the due date without charge, with signed and dated receipts. No fee for cashing the lender's loan check.

If you are behind on a payday loan in Indiana

1. Ask for the payment plan before the due date. Indiana law gives borrowers a way to repay in installments. The details are in the table above. Ask in writing and keep a copy.
2. Stop the automatic withdrawals if they are emptying your account. You can revoke the lender's permission to debit your account and tell your bank. How to do it.
3. Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
4. Talk to a nonprofit credit counselor. A counselor can look at all your bills, not just this one. How to find a real one.

Check a lender, or report one

• Check whether a lender is licensed in Indiana
• File a complaint with the Indiana Department of Financial Institutions (DFI), Consumer Credit Division
• File a complaint with the Consumer Financial Protection Bureau

Sources

• Indiana DFI, Indiana Small Loan Law: Borrower Rights and Responsibilities (brochure), read 2026-10-24
• Indiana DFI advisory, Small Loan Requirements: SSN/TIN in File and Verified (Veritec database), Feb. 20, 2009, read 2026-10-24
• Indiana DFI Consumer Credit Division, read 2026-10-24
• Indiana DFI File a Complaint, read 2026-10-24

This page summarizes the law; it is not legal advice. Laws change, and the statute and regulator control. If something here is out of date, write to hello@paydayloan.help.