What Is the Loan Amount in Indiana?
- A small loans’ principal amount is equal to or more than $50 but also less than 550 dollars according to the Indiana law. (IC 24-4.5-7-104 Small loan)
How Does Indiana Regulate the Finance Fees?
The laws in Indiana also regulate finance fees which are collected from the borrowers.
- Under these laws, the charge for a loan is not allowed over 15% by lenders.
- The finance fee is prohibited to be more than 10% if a loan reaches $401 to $550; the finance fee must be not greater than 13% with a $251 to $ 400 loan, $0 to $250 loans are mostly charged the maximum amount - 15%.
What Is the Cost for a $100 Payday Loan in Indiana?
Suppose that the minimum term is 14 days:
Loan cost: $30
To return: $230
15% of $200=$30
The Terms for Payday Loans in Indiana
- A certain maximum loan term is not set, but payday loans in Indiana must be paid back in a period of over two weeks (14 days) under the law.
- In general, if borrowers can’t repay the loans in time, rollovers are forbidden but 3 extensions are accessible to them. Borrowers can get an extended repayment plan without any fees not agreed from the start after the end of these extensions’ period.
- Only after 7 days counting from the last 6 consecutive loans can borrowers get another payday loan.
Verify lenders’ license - extranet.dfi.in.gov
Since July 2020, borrowers’ ability to repay a loan will not need to be checked by lenders. In order not to fall into a debt trap, you should carefully evaluate your financial situation. CFPB changed the rule.
- Lenders can only receive 1 non-sufficient funds fee less than $20 with a loan from borrowers.
- Indiana forbids any criminal actions against borrowers.
For the sake of preventing any violations from lenders as well as to protect the residents of the state, payday lending businesses are rigorously monitored in the state of Indiana. If lenders commit a violation, they will be held liable and can’t collect any payments in the future, maybe they need to pay a fine of $1000 for a violation or both under the law.