CASH ADVANCE MATH / INDIANA

Payday loans in Indiana: rules, costs and cheaper options

Start with the rules. Then compare the full cost of an advance or a credit union loan before deciding.

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Indiana borrowing rules

Legal as small loans, with DFI-licensed lenders

Maximum loan: $825 across outstanding small loans, excluding finance charges
Fee cap: 15% of the first $250, 13% of the amount over $250 up to $400, and 10% of the amount over $400 up to $825. The maximum finance charge is $99.50 on $825.
Loan term: At least 14 days. No statutory maximum term was found.
Rollovers: No renewal or refinancing with another small loan from the same lender. After an initial loan and 5 consecutive loans, a 7-day break is required.

Principal plus finance charges across small loans cannot exceed 20% of gross monthly income. A borrower may have at most 2 small loans, with only 1 from each lender.

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

Repayment options and borrower safeguards

Extended payment plans: From the third consecutive loan, the lender must offer a plan with at least 4 equal installments over at least 60 days, without a fee. No new small loan with any lender is allowed until that plan is paid.

Cancellation and returned payments: You can cancel without a fee until the end of the next business day. One returned-payment fee of up to $25 is permitted per loan; a check or debit may be presented at most 3 times.

Outstanding-loan checks: Lenders must check their records and a third-party database before lending. DFI describes a statewide database tracking payday loans.

What the sources establish

The $825 cap comes from DFI's pamphlet and annual report. The statute states a $550 base amount adjusted for inflation; the separate rule setting the adjusted cap and the date it became $825 were not verified. The Small Loan Act moved to IC 37-3 effective July 1, 2026, without a substantive change.

Cheaper options in Indiana

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Last checked Sep 30, 2026. These state rules do not change the calculator's national example.

Full researched rules and qualifications

Legal status

Legal as 'small loans' (commonly called payday loans) made by lenders licensed by the Indiana Department of Financial Institutions (DFI). A small loan is a loan from $50 up to the CPI-adjusted cap where the lender holds the borrower's check or debit authorization for a set period (IC 37-3-2-10). Changed in 2026: SEA 169-2026 (P.L.115-2026) recodified the Small Loan Act from IC 24-4.5-7 to IC 37-3, stated to have no substantive effect (IC 37-3-1-0.1); DFI's pamphlet under the new citation is dated effective 2026-07-01.

Maximum loan

$825 (DFI small loan pamphlet and DFI 2025 annual report: 'Payday loans range in size from $50 to $825'). The statute text says $550, adjusted for CPI with October 2006 as the base index (IC 37-3-2-10(b)); the adjusted figure is set in 750 IAC 1-1-1, which we did not open. A lender may not make a loan that brings the borrower's small loan principal with all lenders above $825 (finance charges excluded), may not lend to a borrower who already has 2 small loans outstanding, and may have only 1 loan per borrower at a time (IC 37-3-3-8(b)-(c)). Principal plus finance charges on all small loans may not exceed 20% of monthly gross income (IC 37-3-3-6(a)).

Fees

Tiered finance charge (IC 37-3-3-2): 15% of the first $250; 13% of the amount over $250 up to $400; 10% of the amount over $400 up to the cap ($825). DFI examples: $30 on a $200 advance, $44 on $300, $99.50 on $825. The only other fee allowed is one returned-payment fee of max $25, charged once per loan (IC 37-3-3-3). Our calculation: $15 on $100 for 14 days = 391.1% APR; $99.50 on $825 for 14 days = 314.4% APR.

Term

Minimum 14 days (IC 37-3-3-5(a)). No statutory maximum term found in IC 37-3.

Rollovers

Renewals prohibited: a lender may not renew, repay, refinance or consolidate a small loan with the proceeds of another small loan from the same lender (IC 37-3-3-6(g), 37-3-3-12(9) and (12)). A 'consecutive small loan' is a new loan within 7 calendar days after the previous one is paid in full (IC 37-3-2-4). After an initial loan followed by 5 consecutive loans, no new loan to that borrower for 7 days (cooling-off, IC 37-3-3-5(b)).

Other rules and source qualifications

Extended payment plan: from the 3rd consecutive loan, the lender must offer an EPP; at least 4 equal installments over at least 60 days, no fee, and no new small loan with any lender until it is paid (IC 37-3-3-5(c)-(d); DFI pamphlet). Database: lenders must verify outstanding loans through their own records and a third-party database run by a private consumer reporting service (IC 37-3-3-8(d)); DFI says 'a statewide database is used to track all payday loans'. Borrower may rescind free until the end of the next business day (IC 37-3-3-6(f)). A check or debit may be presented at most 3 times (IC 37-3-3-3(b)). No criminal threats, no attorney fees, no insurance sales, no mandatory arbitration unless DFI-approved (IC 37-3-3-12). Separate: the Indiana Earned Wage Access Act (HB 1125 of 2025, IC 28-8-6) requires EWA providers to hold a DFI license from 2026-01-01 (DFI guidance).

Sources for this state guide