News About the Ever-Changing Payday Advance Industry
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Yes — payday loans are legal in Indiana as “small loans.” You can borrow $50 to $550, but never more than 20% of your monthly gross income. Fees are tiered (15% / 13% / 10% across brackets), the term is at least 14 days, and after three loans in a row a lender must offer a free extended repayment plan. DFI oversees lenders.
| Status | Legal — licensed & regulated |
|---|---|
| Maximum loan | $50–$550, capped at 20% of monthly gross income |
| Maximum fee | Tiered: 15% of the first $250, 13% of $250–$400, 10% of $400–$550 |
| Typical APR | ≈391% on a 14-day loan |
| Loan term | At least 14 days |
| Loans at once | One per lender; no more than 2 outstanding total |
| Rollovers | Prohibited; 7-day cooling-off after 6 consecutive loans |
| Repayment plan | Free extended plan required after 3 consecutive loans (4 installments / 60+ days) |
| Regulator | Department of Financial Institutions (DFI) |
| Law | Indiana Small Loan Act (Ind. Code 24-4.5-7) |
Indiana's fee is tiered: 15% of the first $250, 13% of the next $150, and 10% of the rest up to $550. On a $100 two-week loan that's $15 — about a 391% APR — and your loan can't exceed 20% of your monthly income.
| Amount borrowed | Fee | Total repaid |
|---|---|---|
| $100 | $15 | $115 |
| $250 | $37.50 | $287.50 |
| $400 | $57 | $457 |
| $550 | $72 | $622 |
Payday (small-loan) lenders in Indiana are licensed by the Department of Financial Institutions. To report a violation or an illegal lender, use the online complaint form.
Before borrowing, compare a credit-union payday-alternative loan, an employer paycheck advance, or a payment plan with the biller. See our guide to payday loans and alternatives.
Disclaimer: general information, not legal or financial advice. Laws change — verify the current rules with the Indiana Department of Financial Institutions (DFI) before borrowing. Last reviewed 2026.
Sources
Yes. They are legal as “small loans” under the Indiana Small Loan Act (Ind. Code 24-4.5-7), overseen by the Department of Financial Institutions.
$50 to $550, but never more than 20% of your monthly gross income.
A tiered fee — 15% of the first $250, 13% of $250–$400, and 10% of $400–$550 — about a 391% APR on a two-week loan.
Yes. After three consecutive loans, the lender must offer a free extended repayment plan of at least four installments over 60 or more days.
Indiana
Sheri Howard was the focus of a story in The Journal Gazette last week. How come? Because her desk sits in the center of the jewelry counter at Broadway Loan, a pawnshop at Broadway and Taylor Street.