Indiana Payday Loan Laws, Explained

Last updated: July 20, 2026

By the US Lending Editorial Team · Reviewed for factual accuracy against the federal and state sources cited on this page.

Key takeaway

Key takeaway: 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.

Who this is forThis guide is for Indiana residents comparing a payday, cash-advance, or short-term loan, and anyone checking what is legally allowed before they borrow.

When to use itUse it before you accept any offer, so you can compare the total cost across more than one lender.

What this page covers

The Uniform Consumer Credit Code
The Tiered Fee Structure
The Two-Loan Limit

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.

Factor	Indiana Rule
Maximum loan amount	$605, or 20% of gross monthly income
Fee scale	15% / 13% / 10%, tiered by amount, plus $33.50 database fee
Loan term	14–120 days
Simultaneous loans	Capped 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.

Sources: NCSL — Payday Lending State Statutes · CFPB — Payday Loans

Indiana Payday Loan FAQ

Are payday loans legal in Indiana?

Yes. Indiana allows payday loans up to $605, or 20% of gross monthly income, whichever is less.

How much can you borrow with a payday loan in Indiana?

Up to $605, or 20% of your gross monthly income. Terms run 14 to 120 days.

How many payday loans can you have in Indiana?

Up to 2 at once, tracked through the Veritec database.

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