Indiana Payday Loans Law
Nowadays payday loans are gaining more and more popularity amongst borrowers and Indiana residents make no exception. Indiana payday loans are completely legal.
The state of Indiana is the 38th largest state in the US and it is 16th most populous with a population of over 6,619,680 residents. In 1679-1680, the French were the first Europeans to explore what we call the state of Indiana today. The region was quite important in the Franco-British struggle for North America that ended with a win for Britain in 1763. Lake Michigan waterfront is one of the greatest industrial centers in the world, turning out iron, oil and steel products.
Other products include mobile homes, automobile parts and accessories, aircraft engines, farm machineries and many others. Pharmaceuticals and wood furniture are also manufactured in this state. Indiana is a leader in agriculture with corn, soybeans, oats, wheat, tomatoes, rye and onions contributing greatly to Indiana’s agricultural output. It’s easy to find loans stores in the state of Indiana.
Payday loans explanation
Basically, payday loans are short-term loans which the borrower has to pay back the amount of money he has taken out by his next paycheck.
Indiana payday loans laws regulations
According to Indiana Code Ann. § 24-4.5-7-101 et seq, payday loan lending in the state of Indiana is completely legal and lending companies can conduct their businesses. It is safe to say that Indiana payday loans laws are a little different compared to other state laws. Lending companies are not allowed to give borrowers loans exceeding 20% of their monthly income. Even more so, lenders are forbidden to give loans that are more than $550, including all finance charges and fees. The purpose of these measures is to protect borrowers from unscrupulous lenders and prevent the borrower from sinking further into debt.
This is also the reason why in the state of Indiana, borrowers are not allowed to take out more than two outstanding loans at one time. These loans should be taken out from different lending companies. According to Indiana payday loans laws, all payday loans should be repaid within 14 days.
Indiana payday loans companies
The loan lending industry is constantly growing and payday loans are probably the most popular loan type out there. In recent years, the number of payday loan lending companies in Indiana has increased. What is adding a lot to that growth is the online availability of payday loans. Today, if you are a resident of Indiana, you can either visit an on-ground lending store or submit your application online. Searches on the web regarding Indiana payday loans are among the most popular web searches in Indiana.
Payday loans benefits Indiana
When taking out a loan, there is always a certain risk and with payday loans, the situation is no different. However, when you take out a payday loan, that risks comes with lots of benefits such as:
Choose from different options
Chances are that there would be a loan lending company’s office somewhere near your workplace or your home. However, you may want to submit your application online without having to leave the comfort of your home and with payday loans you can do just that. You have the freedom to choose whether you want to apply by going to a store or visiting a loan company’s website online.
You get your money fast
If you are thinking of taking out a loan, you are most likely in a situation where your finances are out of your control and you need to get that control back as soon as possible. When requesting a payday loan, you can start taking care of your bills just hours after you have submitted your application. If you want to apply online, it may take one business day for you to get your money.
Having bad credit is ok
Without a doubt, the fact that you can apply for a payday loan even if you have bad credit is one of the main reasons why payday loans dominate the short-term loan business industry.
What you do with the loan money is up to you
While you need to specify exactly what you intend to do with the money you are borrowing when you take out a loan from a traditional bank, with payday loans, as long as you don’t do anything illegal, you are pretty much free to do whatever you want with the money. You can use the money to pay immediate bills, repair your car – it is all up to you and lending companies have no say in it.
Payday loans charges and fees in the state of Indiana
Before you decide whether or not you should apply for a payday loan in Indiana, there are certain things you should know:
The annual percentage rate for a two-week $100 payday loan in Indiana should not be more than 390%.
Fees and charges
In Indiana, loan lending companies are not allowed to charge more than 15% on a loan amount of $250 or below. The maximum charge for loans between $251 and $400 is 13% and the maximum charge on a $500 loan cannot be more than 10%.
In case of a failed payment, lending companies in Indiana may charge a one-time NSF fee of $25.
According to Indiana payday loan laws, rollovers in the state are forbidden. However, borrowers can have up to three extensions on their loans.
Payday loans eligibility in the state of Indiana
By now, you know that requesting a payday loan in Indiana is rather fast and simple. There are, however, some requirements you have to meet to be eligible for your loan:
- 18 years old or older
- Permanent resident of the US or an American citizen
- You must have a steady source of income
In order to have a successful application, there is some information you need to provide:
- Your social security number, name and date of birth
- Phone number, home and email address
- Details regarding your employment and income
Cities in Indiana where you can find payday loan lenders:
- Crown Point
- East Chicago
- Fort Wayne
- La Porte
- Michigan City
- New Albany
- South Bend
- Terre Haute
- West Lafayette
Alternatives to payday loans in the state of Indiana
Most borrowers may see payday loans as their best way of dealing with financial issues. However they are not the only way out. You can also try:
- Asking a friend or family member to help you out;
- You can try taking out a small loan from your bank;
- You can ask your employer for a payment in advance
- Or you can ask the creditor for more time to pay your bills