Online Installment Loans in Indiana
Page last reviewed: October 28, 2026 · Reviewed for accuracy by Betty Walsh
Rate cap: A graduated rate starting at 36% a year on the first $2,600 of the balance, or 25% on the whole balance, whichever is greater.
Prepaid finance charge: Up to $75, $150 or $200, depending on the loan amount; it isn't refunded.
Ceiling: With every charge included, the APR can't exceed 72%.
Regulator: Indiana Department of Financial Institutions (DFI), (800) 382-4880.
LendUp isn't a lender. We pass your request to lenders in our network; offers aren't guaranteed, and we may earn compensation if a loan is funded.
How to Get an Installment Loan in Indiana
- Choose the amount and term; loans of $1,290 or less run up to 25 months, and loans up to $5,200 up to 37 months.
- Submit one request through LendUp with your ID, income details and bank account. Lenders in our network review it, and you see the full cost before you sign. Any prepaid finance charge, $75 to $200 depending on the amount, has to be in that cost.
- Check the lender's Indiana consumer loan license in NMLS Consumer Access before you sign.
What an Indiana Installment Loan Costs
| Charge | Indiana limit |
|---|---|
| Interest | A graduated rate starting at 36% a year on the first $2,600 of the unpaid principal, stepping down above $2,600 and $5,200; or 25% a year on the whole balance, whichever is greater |
| Prepaid finance charge | Up to $75 on loans of $2,000 or less, $150 on loans up to $4,000 and $200 above that; nonrefundable |
| Other upfront charges | Non-bank lenders can't add more prepaid charges, even refundable ones, above those caps |
| 72% ceiling | The APR at signing, prepaid charge included, can't exceed 72%; a higher rate is a felony and the contract is void |
| Term | No more than 25 months on loans of $1,290 or less, and 37 months on loans up to $5,200 |
| Returned payment | Up to $25 |
A loan with a yearly rate of 25% or less isn't a supervised loan and has different limits. The $2,600, $5,200 and $1,290 figures are adjusted for inflation every two years; these took effect on January 1, 2025.
Paying Early
Indiana has banned precomputed consumer loans since July 1, 2020, so interest is charged only on the balance you owe, for the days you owe it. Paying early, in full or in part, cuts the interest you pay. The prepaid finance charge is nonrefundable, so you don't get it back when you pay early.
Online Installment Lenders in Indiana
Applying online doesn't change the rules: an online lender making supervised loans to Indiana residents needs the same DFI license and the same caps. Lenders apply for Indiana consumer loan licenses through NMLS, so an online lender's Indiana license should show up in NMLS Consumer Access.
Verify an Installment Lender in Indiana
- Search NMLS Consumer Access by the lender's legal name or NMLS number, not just the website name.
- Check that Indiana is listed with an active Consumer Loan license.
- Or search DFI's Find a License tool.
- Match the company's name and address to the contact details on your offer.
To report an unlicensed lender or complain about a licensed one, call DFI toll-free at (800) 382-4880 or email [email protected].
Your Rights in Indiana
- Simple interest only. Precomputed loans are banned, so you pay interest only on what you still owe.
- A hard cap on upfront charges. Non-bank lenders can't collect prepaid charges above $75, $150 or $200, depending on the loan amount.
- A 72% ceiling. A consumer loan above 72% APR breaks Indiana's loansharking law, and the contract is void.
- Military borrowers. Federal law caps most loans to active-duty servicemembers and their families at a 36% Military Annual Percentage Rate.
Indiana Installment Lending by the Numbers
- 109 companies held a DFI consumer loan license on December 31, 2025, with 222 branches between them.
- DFI's 40 consumer loan exams in 2025 found 1,587 violations totaling $67,787.92.
- When examiners find a violation, DFI looks for its cause and gets the lender's assurance that future loans will comply.
Indiana Installment Loan Questions
What is the interest rate cap on installment loans in Indiana?
Supervised lenders can charge a graduated rate starting at 36% a year on the first $2,600 of the balance, or 25% a year on the whole balance, whichever is greater.
What fees can an Indiana installment lender charge up front?
A nonrefundable prepaid finance charge of up to $75 on loans of $2,000 or less, $150 on loans up to $4,000 and $200 above that. Non-bank lenders can't add more.
Are online installment loans legal in Indiana?
Yes, from lenders with an Indiana consumer loan license. Online lenders follow the same rate caps and the 72% ceiling as storefront lenders.
Can I pay off an Indiana installment loan early?
Yes. Interest is charged only on the balance you owe, so paying early saves interest. The prepaid finance charge isn't refunded.
How long can an Indiana installment loan last?
No more than 25 months for loans of $1,290 or less and 37 months for loans up to $5,200. Larger loans can run longer.
Official Sources
General information, not legal advice. Facts on this page were checked against these sources on October 28, 2026.
- Indiana DFI - Dollar amounts effective January 1, 2025 (LSA Document #24-266)
- Indiana DFI Advisory Letter 2017-02 - Prepaid finance charges and the 72% loansharking limit
- Indiana DFI - 2020 legislation summary (SEA 395 prepaid finance charges)
- Indiana DFI - SEA 395 Q&A (2020)
- Indiana DFI - 2014 law changes summary (supervised loan terms)
- Indiana DFI - 2018 consumer credit law changes Q&A
- Indiana DFI - 2025 annual report
- Indiana DFI - Legal resources and IC 37 recodification notice
- Indiana DFI - Consumer credit licensing
- Indiana DFI - Contact us
- Indiana DFI - File a complaint
- NMLS Consumer Access - license lookup
- CFPB - Rights under the Military Lending Act