Payday Lenders in Indiana
Payday Loan Laws
Payday loans are a controversial topic in Indiana, as they often come with high-interest rates and fees that can trap borrowers in a cycle of debt. While payday loans are legal in the state of Indiana, there are laws in place to regulate them. Some of these restrictions include the requirement for payday lenders to be licensed by the state, and they can only lend up to a certain amount. There are also limits on the fees that lenders can charge and restrictions on the number of loans a borrower can take out at once.
The State of Indiana has several other pieces of legislation that govern payday loans:
- Burns Ind. Code Ann § 24-4.5-7-404: States that borrowers can only have one payday loan with a single lender at any given time and two total payday loans at one time.
- Burns Ind. Code Ann § 24-4.5-7-401: Establishes the terms for an extended payment plan that can be scheduled in four even payments and the cooling-off period required after five consecutive loans.
- Burns Ind. Code Ann § 24-4.5-7-410: Prohibits rollovers on payday loans.
Loan Terms and Conditions
Maximum loan amount: $605 or 20% or gross monthly income (whichever is less)
Maximum Interest Rate: No maximum defined in legislation
Minimum loan term: 14 days
Maximum loan term: No maximum defined in legislation
Number of rollovers allowed: None
Finance Charge: $50-$250 – 15%; next $150 – 13%; final $150 – 10%
Legal action: 6 Years
Certified Payday Lenders in Indiana
Company Name | Company score | License Status |
Tribal Lending Enterprise, Inc | 8 | Valid |
CNG Financial Corporation | 7.6 | Valid |
LDF Holdings, LLC | 7.5 | Valid |
Advance America, CAsh Advance Centers, Inc. | 7 | Valid |
Populus Financial Group, Inc. | 6.5 | Valid |
Kashia SErvices | 5.8 | Valid |
History of Indiana Payday Loans
How to file a complaint
- ADDRESS
- 30 South Meridian Street, Suite 200, Indianapolis, Indiana 46204
- 317-232-3955
- Website
Types of Quick Loans in Indiana
How to Get out of Payday Loan Debt?
Types of Quick Loans in Indiana
Alternatives to Payday Loans in Indiana
Personal Loans
Personal loans are a type of unsecured loan that can be used for any number of purposes at the borrower's discretion. Borrowers can obtain personal loans from banks, credit unions, and online providers. The interest rates and fees depend on the lender but are typically lower than credit cards or payday loans. Personal loans can be an excellent option for those who need a lump sum of cash upfront and prefer a fixed repayment schedule.
Construction Loans
Construction loans are used to help finance new construction projects or major renovations for existing homes. They are usually short-term loans that are repaid in a lump sum once the project is complete. In Indiana, construction loans may require a down payment of at least 20%, and the loan amount is typically based on the property's appraised value after the project is completed. Before taking out a construction loan, it's essential to have a solid plan in place and ensure that you can make the payments on time.
Home Equity Loans
Home equity loans allow homeowners to borrow against the equity they've built in their homes. In Indiana, home equity loans are available from banks and credit unions and are typically used for home improvements, debt consolidation, or other major expenses. Home equity loans usually have lower interest rates than a lot of other types of loans because they are secured by a piece of property. In Indiana, the maximum amount that can be borrowed for a home equity loan is 80% of the home's value minus any outstanding mortgage balance.
Bad Credit Loans in Indiana
Bad credit loans are designed to help people with poor credit scores access funds when needed. Since the risk the lender is taking is higher than most personal loans, they tend to have higher interest rates and fees. However, they can be a viable option for those who need cash quickly and cannot obtain traditional loans.
Indiana Small Business Loans
Small business loan options in Indiana:
- SBA loans: The SBA offers several loan programs for small businesses, including 7(a) loans, microloans, and disaster loans.
- Community Development Financial Institutions (CDFIs): These organizations provide loans and other financial services to small businesses in underserved communities.
- Credit union loans: Credit unions may offer small business loans with lower interest rates and more flexible repayment terms.
- Regional Economic Development Organizations (REDOs): This organization offers loans, grants, and other financial resources to small businesses in their respective regions of Indiana.
- Indiana Finance Authority (IFA): The IFA offers loan programs, loan guarantees, and tax-exempt bond financing to businesses in Indiana.
VA loans in Indiana
VA loans are offered to eligible veterans, active-duty service members, and their spouses to help purchase a home. They are unique to other mortgage loans because they are backed by the Department of Veterans Affairs (VA), meaning that lenders are protected against loss if the borrower defaults. VA loans usually offer more favorable terms than traditional mortgages, including lower interest rates, no down payment requirements, and no private mortgage insurance (PMI) requirements. To qualify for a VA loan in Indiana, borrowers must meet eligibility requirements, including minimum credit score and service requirements. VA loans are a great option for eligible veterans and service members who want to become homeowners.
Indiana Student Loans
Many options are available to Indiana students to help finance their college education. These options include:
- Federal Student Loans: The U.S. Department of Education offers several federal student loan programs, including Direct Subsidized and Unsubsidized Loans, Parent PLUS Loans, and Graduate PLUS Loans.
- Indiana Secondary Market for Education Loans (ISM): ISM offers private student loans to Indiana residents with competitive interest rates and flexible repayment terms.
- Indiana National Guard Supplemental Grant: This grant provides up to $2,000 per year to Indiana residents who are members of the Indiana National Guard and attend an eligible Indiana college or university.
- Vocational Rehabilitation Supplemental Grant: This grant provides up to $1,000 per year to Indiana residents who have a disability and are pursuing a degree at an eligible Indiana college or university.
- Private Student Loans: Private lenders, such as banks and online lenders, offer student loans with varying interest rates and repayment terms.
Indiana Income Information
United States Census Bureau. “Poverty in the United States: 2021.” Accessed on April 21, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts: Indiana. Accessed on April 21, 2023.
Indiana Payday Lender Complaints
Company Name | Count |
Tribal Lending Enterprise, Inc | 10 |
CNG Financial Corporation | 8 |
LDF Holdings, LLC | 7 |
Advance America, CAsh Advance Centers, Inc. | 7 |
Populus Financial Group, Inc. (F/K/A Ace Cash Express) | 5 |
Kashia SErvices | 4 |
Total Complaints | 130 |
Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on April 21, 2023.
Most Common Issues
Complaint type | Count |
Unexpected fees or interest | 44 |
Struggling to pay loan | 23 |
Can’t contact lender | 13 |
Received a loan didn’t apply for | 11 |
Can’t stop withdrawal from bank account | 8 |
What are the main reasons residents of Indiana apply for payday cash advance online or offline
Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per data reported by Pewtrust, the percentage of reasons described below
Reason | Share |
Regular Expenses (Utilities, car payment) | 53% |
Unexpected emergency/expense | 16% |
Rent/Mortgage | 10% |
Something Special | 8% |
Other | 5% |
Did not answer | 2% |
Payday Lenders by City
- Indianapolis
- Fort Wayne
- Evansville
- South Bend
- Carmel
- Fishers
- Bloomington
- Hammond
- Lafayette
- Gary
- Noblesville
- Muncie
- Greenwood
- Kokomo
- Terre Haute
- Anderson
- Elkhart
- Mishawaka
- Columbus
- Jeffersonville
- Lawrence
- Westfield
- West Lafayette
- Portage
- New Albany
- Merrillville
- Richmond
- Goshen
- Plainfield
- Valparaiso