Indiana Payday Loans - $605 Max, 33% Fee Cap, DFI Rules (2026)
Indiana regulates payday loans under the Uniform Consumer Credit Code (IC 24-4.5-7), with oversight by the Indiana Department of Financial Institutions (DFI). The law caps payday loans at $605 maximum (or 20% of gross monthly income), allows tiered fees up to 33% plus a $33.50 database verification fee, permits 14-120 day terms, and limits borrowers to two simultaneous loans through Veritec database tracking. This guide explains Indiana's payday loan regulations, costs for residents in Indianapolis, Fort Wayne, Evansville, and consumer protection resources.
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Indiana Payday Loan Laws - What You Need to Know
Indiana enacted the Uniform Consumer Credit Code (IC 24-4.5-7) to regulate small loans including payday lending. The law was updated in 2002 to create the current $605 cap and fee structure. All payday lenders must be licensed by the Indiana Department of Financial Institutions (DFI) and participate in the Veritec Solutions database that tracks loans in real-time to enforce the two-loan limit.
Key Indiana Payday Loan Regulations:
- $605 maximum (or 20% gross monthly income, whichever is less)
- Tiered fees - 15% of first $250, 13% of $251-$400, 10% over $400 + $33.50 database fee
- 14-120 day terms - Flexible (most lenders offer 14 days)
- Two-loan limit - Can have 2 loans simultaneously (combined total ≤ $605)
- One rollover allowed - Can renew once, then must repay fully
- DFI oversight - Licensed lenders only, Veritec database enforcement
Indiana's tiered fee structure means larger loans cost less per dollar borrowed. For example, a $605 loan incurs: 15% on first $250 ($37.50) + 13% on next $150 ($19.50) + 10% on final $205 ($20.50) = $77.50 in percentage fees, plus $33.50 database fee = $111 total fees. That's 18.3% of the loan amount, higher than Tennessee's flat 15% but still capped.
The two-loan limit is unique to Indiana. Unlike Michigan and Tennessee (one loan at a time) or Texas (unlimited), Indiana allows borrowers to have two payday loans simultaneously from different lenders. However, the combined principal cannot exceed $605 or 20% of your gross monthly income. For example, if you earn $3,000/month, your income-based limit is $600 (20% of $3,000), so you could have one $400 loan and one $200 loan, but not two $400 loans.
Indiana Payday Loan Cost Comparison
Here's how much payday loans cost in Indiana for common loan amounts. Remember: Indiana uses tiered fees (15% on first $250, 13% on $251-$400, 10% over $400) plus a $33.50 database verification fee. APR shown is for 14-day loans (most common).
| Loan Amount | Tiered Fee | Database Fee | Total Repayment | APR (14 days) |
|---|---|---|---|---|
| $100 | $15.00 | $33.50 | $148.50 | ~868% |
| $250 | $37.50 | $33.50 | $321 | ~521% |
| $400 | $57.00 | $33.50 | $490.50 | ~430% |
| $605 (Max) | $77.50 | $33.50 | $716 | ~425% |
⚠️ Indiana Database Fee Impact
The $33.50 database verification fee makes small loans extremely expensive in Indiana. A $100 loan costs $48.50 in total fees (48.5% for just 14 days = 868% APR). Larger loans are more cost-efficient: a $605 loan's fees are 18.3% of the amount.
Tip: If you need under $200, consider credit union PALs (28% APR max) or cash advance apps ($0-10/month). Indiana credit unions include Indiana Members Credit Union and Teachers Credit Union.
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Payday Loan Examples by Indiana City
🏙️ Indianapolis (Population: 887,642)
Loan Amount: $605 (maximum)
Tiered Fee: $77.50
Database Fee: $33.50
Total Repayment: $716
APR (14 days): ~425%
Indianapolis Context: Median household income $54,260 (2024). Indianapolis has 100+ licensed payday locations (highest in Indiana). As state capital, DFI enforcement is strong. Online lenders dominate due to faster approval.
Affordability: $716 repayment = 15.8% of monthly median income ($4,522). Indiana Members CU offers PALs as alternative.
🏘️ Fort Wayne (Population: 270,402)
Loan Amount: $400
Tiered Fee: $57.00
Database Fee: $33.50
Total Repayment: $490.50
APR (14 days): ~430%
Fort Wayne Context: Median household income $51,130 (2024). Fort Wayne has 30+ licensed locations. Strong manufacturing sector (GM, Steel Dynamics) provides stable employment for most borrowers.
Affordability: $490.50 repayment = 11.5% of monthly median income ($4,261).
Frequently Asked Questions - Indiana Payday Loans
What is the maximum payday loan amount in Indiana?
Indiana law caps payday loans at $605 per loan (or 20% of gross monthly income, whichever is less). This limit has been in place since 2002 under the Indiana Uniform Consumer Credit Code (IC 24-4.5). The $605 cap is higher than Michigan ($600) and Tennessee ($500), but Indiana enforces strict database tracking through Veritec Solutions to prevent borrowers from exceeding limits across multiple lenders.
How much does a payday loan cost in Indiana?
Indiana payday loans can charge up to 15% of the first $250, 13% of amounts from $251-$400, and 10% of amounts over $400, plus a $33.50 database verification fee. For a $605 loan for 14 days, total fees are approximately $95 ($61.50 in percentage fees + $33.50 database fee), making total repayment $700. This equals an APR of approximately 391% for a two-week loan.
Does Indiana regulate payday lenders?
Yes, Indiana payday lenders are regulated by the Indiana Department of Financial Institutions (DFI). All payday lenders must be licensed under IC 24-4.5-7 (Small Loans statute). DFI conducts examinations, investigates complaints, and can revoke licenses. Indiana uses Veritec Solutions database to track all payday loans in real-time and enforce the two-loan limit.
How many payday loans can I have in Indiana?
Indiana law limits borrowers to two payday loans at a time from different lenders. However, the combined total of both loans cannot exceed $605 or 20% of your gross monthly income, whichever is less. The Veritec database enforces this limit - lenders must check before approving any loan. There is no annual limit on number of loans (unlike Ohio's 4-loan cap), but you cannot have more than two outstanding at once.
What is the minimum loan term in Indiana?
Indiana allows payday loan terms between 14-120 days. Most lenders offer 14-day loans (traditional payday loan). Unlike Tennessee (which allows 14-31 days) or Michigan (fixed 31 days), Indiana permits longer terms up to 120 days for more expensive loans. However, the majority of Indiana payday loans are 14-day loans. Longer terms may incur additional monthly fees.
Can payday loans be rolled over in Indiana?
Indiana law allows one rollover or renewal per loan. After the first rollover, the loan must be fully repaid. The database enforces this one-rollover limit. Each rollover incurs new fees based on the remaining balance. Indiana does not mandate Extended Payment Plans like Tennessee, so the single rollover is your only extension option beyond the original due date.
Do Indiana payday lenders check credit?
Most Indiana payday lenders do not check traditional credit bureaus (Equifax, Experian, TransUnion). However, all lenders must check the Indiana Veritec Solutions database before approving a loan to verify you do not exceed the two-loan limit or $605 cap. Some lenders use alternative credit checks (Clarity Services, Teletrack). Payday activity is reported to the state database but not typically to major credit bureaus unless the loan goes to collections.
Are payday loans available in Indianapolis, Fort Wayne, and Evansville?
Yes, payday loans are available throughout Indiana, including Indianapolis (population 887,642), Fort Wayne (270,402), and Evansville (118,414). Most lenders operate online serving all Indiana ZIP codes. Storefront locations are widespread - Indianapolis has 100+ licensed locations, Fort Wayne has 30+, and Evansville has 20+. Online lenders licensed by Indiana DFI can serve residents statewide.
How do I verify an Indiana payday lender is licensed?
Check the Indiana DFI website at in.gov/dfi for the official list of licensed small loan lenders. Search by company name or license number. All legitimate Indiana payday lenders must display their DFI license number on their website and physical locations. Unlicensed lenders are not bound by the $605 limit or fee caps. Report unlicensed lenders to Indiana DFI Consumer Credit Division at 800-382-4880.
What happens if I cannot repay my Indiana payday loan?
If you cannot repay your Indiana payday loan on the due date, you can request one rollover/renewal with new fees. After the rollover, the loan must be fully repaid (no EPP mandated like Tennessee). If you default, the lender can deposit your check or initiate ACH withdrawal. Bounced payments may incur NSF fees ($25-35). The lender can report to collections and pursue legal action. Contact Indiana DFI Consumer Credit (800-382-4880) for disputes.
Alternatives to Payday Loans in Indiana
💰 Credit Union PALs
- • Max APR: 28% vs. 425% payday
- • Amounts: $200-$1,000
- • Terms: 1-6 months
- • Example: $605 = $14/month vs. $111 payday
- • Providers: Indiana Members CU, Teachers CU
📱 Cash Advance Apps
- • Earnin, Dave, Brigit, Chime SpotMe
- • $20-$250 instant access
- • $0-10/month subscription
- • No database fees
- • All Indiana residents eligible
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Regulatory Oversight: All Indiana payday lenders must be licensed by the Department of Financial Institutions under IC 24-4.5-7. Check in.gov/dfi for licensed lenders.
Consumer Protections: $605 maximum (or 20% gross monthly income), tiered fees capped at 33% + $33.50 database fee, two-loan limit enforced via Veritec database, one rollover allowed per loan, 14-120 day terms.
File Complaints: Indiana DFI Consumer Credit Division at 800-382-4880 or in.gov/dfi for unlicensed lenders, excessive fees, harassment, database violations.
Responsible Borrowing: Payday loans are expensive (425% APR). Consider credit union PALs (28% max) or cash advance apps first. Free counseling: nfcc.org
About the Author
Rostislav Sikora is a loan industry expert specializing in U.S. consumer credit regulations and payday lending compliance. With expertise in state-by-state lending laws, Rostislav helps consumers understand loan costs, compare options, and navigate financial decisions responsibly.
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