Indiana Small Loans

According to Indiana law, a small loan is any loan with a principal amount that is more than $50.00 and less than $401.00; is a single payment loan for a term of at least 14 days; and in which the lender holds the borrower's check under an agreement as security.

The maximum loan finance charge for a small loan is:

1. Finance charges on the first two hundred and fifty dollars ($250) of a small loan are limited to fifteen percent (15%) of the principal.
2. Finance charges on the amount of a small loan greater than two hundred fifty dollars ($250) up to four hundred dollars ($400) are limited to thirteen percent (13%).
3. Finance Charges on the amount of a small loan greater than four hundred dollars ($400) and not more than five hundred dollars ($500) are limited to ten percent (10%).

These are the highest rates that a creditor in Indiana can charge for small loans, but many creditors do charge less. As with any other loan, if you take the time to shop around for a small loan and if you have a sound credit history, you should be able to negotiate a much lower rate.