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Indiana Payday Loan Laws, Explained

Last updated: July 20, 2026

Indiana has regulated payday lending under the same basic framework since 2002 — a loan cap tied to income, a fee scale that shrinks as the loan gets bigger, and a database that stops borrowers from stacking too many loans at once.

The Uniform Consumer Credit Code

Indiana regulates payday loans under the Uniform Consumer Credit Code (IC 24-4.5-7), overseen by the Indiana Department of Financial Institutions. A single loan is capped at $605 or 20% of the borrower's gross monthly income, whichever is less — a rule that's been in place since 2002.

The Tiered Fee Structure

Rather than one flat rate, Indiana uses a sliding fee scale: 15% on the first $250 borrowed, 13% on the portion from $251 to $400, and 10% on anything above $400 — plus a separate $33.50 database verification fee charged per loan. Loan terms run from 14 to 120 days.

The Two-Loan Limit

Indiana uses Veritec, a statewide database, to track active payday loans in real time. Lenders check it before issuing a new loan, and borrowers are capped at two simultaneous loans — a guardrail against the debt-cycle pattern common in states without this kind of tracking.

FactorIndiana Rule
Maximum loan amount$605, or 20% of gross monthly income
Fee scale15% / 13% / 10%, tiered by amount, plus $33.50 database fee
Loan term14–120 days
Simultaneous loansCapped at 2, via Veritec database
Verify current terms with the Indiana Department of Financial Institutions before applying. Note: Indiana's consumer lending statutes are being recodified into a new "Consumer Lending" title effective July 1, 2026, without substantive rate changes.

Because Indiana's fee scale changes with loan size, comparing total dollar cost across lenders — not just the headline fee percentage — is worth the extra step.

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