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Personal Loans in Indiana: What Licensed Lenders May Charge

Indiana's Uniform Consumer Credit Code lets a licensed lender charge the higher of a three-bracket rate or a flat 25% a year, plus a one-time prepaid finance charge. Here is how that works, who needs a license, and where to check a lender.

Cap above 36%, by LendCedar Editorial Team Updated 6 minute read

In short

Under Indiana Code 24-4.5-3-508, part of the Uniform Consumer Credit Code, the finance charge on a consumer loan from a licensed lender may not exceed the greater of three brackets (36% a year on the first $2,000 of principal, 21% on the part up to $4,000 and 15% above that, with the dollar amounts adjusted for inflation) or a flat 25% a year. A nonrefundable prepaid finance charge of $75 to $200 can be added. All in, that allows about 40% APR on a $2,000 two-year loan and about 26% on a $10,000 five-year loan. Lenders need a consumer loan license from the Indiana Department of Financial Institutions (DFI).

$2,000 loan cap
40% APR
$10,000 loan cap
26% APR
Rate brackets
36% / 21% / 15% or 25%
Licensed by
Indiana DFI
Map of the United States with Indiana highlighted

Indiana at a glance

Cap on a $2,000 loan Above 36%
$2,000 two-year loan About 40% APR, fees included NCLC calculation for a licensed non-bank lender, September 2025
$10,000 five-year loan About 26% APR, fees included
Lender license Consumer loan license, Indiana Code 24-4.5-3-502
Regulator Indiana Department of Financial Institutions (DFI)

How the Indiana rate limit works

Section 24-4.5-3-508 measures the finance charge by the actuarial method and caps it at whichever of two figures is higher. For a small loan the bracket figure is usually higher; for a large loan the flat 25% usually is.

Loan finance charge limits under IC 24-4.5-3-508 (2025 Indiana Code)
Part of the unpaid principalBracket rateAlternative
Up to $2,00036% a year25% a year on the whole balance
$2,000.01 to $4,00021% a year25% a year on the whole balance
Above $4,00015% a year25% a year on the whole balance

The $2,000 and $4,000 break points are dollar amounts that the law adjusts over time with a consumer price index under Section 24-4.5-1-106, so the figures in force today may differ from these base amounts. Ask the lender which amounts it used.

On a larger loan the flat rate governs. As an example, not an offer: a $10,000 loan at 25% a year over 60 months costs $293.51 a month. With the $200 prepaid finance charge taken from the loan, the APR comes to about 26.0%, which matches the National Consumer Law Center's figure for a $10,000 five-year loan in Indiana.

How Indiana compares with its neighbors

Most a licensed non-bank lender may charge, fees included (National Consumer Law Center)
State$2,000 two-year loan$10,000 five-year loan
IndianaAbout 40% APRAbout 26% APR
Illinois36% APR36% APR
OhioAbout 31% APRAbout 26% APR
MichiganAbout 30% APRAbout 27% APR
KentuckyAbout 42% APRAbout 30% APR

The $2,000 figures are current as of September 2025 and the $10,000 figures as of August 2023. On a small loan, Indiana allows more than most of its neighbors; on a large loan it sits near the 27% median. The state rules map shows every state.

Who needs a license

Section 24-4.5-3-502 requires a license from the department to regularly make consumer loans, take assignments of them, or collect on them, other than small loans and mortgage transactions. The DFI calls it the consumer loan license, and lenders apply through the Nationwide Multistate Licensing System (NMLS).

  • Depository institutions, their federally regulated subsidiaries and credit union service organizations may make consumer loans without this license.
  • Online lenders that partner with a bank may make loans through that bank, which can put the loan outside Indiana's limits. Ask who the lender of record is.
  • Small loans of up to $825, Indiana's payday loans, need a separate small loan license with their own fee limits. Our sister site Lendmira covers them on its Indiana page.

Paying early

Section 24-4.5-3-209 lets you prepay the unpaid balance of a consumer loan in full at any time without penalty, subject to the rebate rules for precomputed charges. The exception is a loan secured by land, where the contract may set a penalty of up to 2% of the amount prepaid, and even then not if you prepay after three years, refinance with the same creditor or pay from insurance proceeds. The prepaid finance charge is not refunded. See prepayment penalties and the extra payment calculator.

Check a lender and file a complaint

  1. Look up the license with the DFI's license look up, or in NMLS Consumer Access, before you apply.
  2. Keep the loan papers: the Truth in Lending disclosure, the agreement and any messages about fees. How to verify a lender lists other warning signs.
  3. File a complaint through the DFI's File a Complaint page.
  4. Send a complaint to the CFPB as well if the lender is a bank or a bank partner.

Sources

  1. Indiana Code 24-4.5-3-508 — Loan finance charge (2025 Indiana Code, Justia)
  2. Indiana Code 24-4.5-3-502 — License required (2025 Indiana Code, Justia)
  3. Indiana Code 24-4.5-3-209 — Right to prepay (2025 Indiana Code, Justia)
  4. Indiana Department of Financial Institutions — consumer credit licensing
  5. Indiana Department of Financial Institutions — file a complaint
  6. State APR caps for $500, $2,000 and $10,000 installment loans, December 2025 (National Consumer Law Center)

We checked the facts on this page against these sources on October 27, 2026. The bracket break points are adjusted over time, so the dollar amounts in force may differ from the base figures in the statute.

Questions people ask

What is the maximum interest rate on a personal loan in Indiana?

For a licensed lender, the higher of 36% a year on the first $2,000 of principal, 21% on the part up to $4,000 and 15% above that (dollar amounts adjusted for inflation), or 25% a year on the whole balance, under IC 24-4.5-3-508. A prepaid finance charge of $75 to $200 can be added.

Can an Indiana lender charge me for paying off a personal loan early?

Not on an unsecured loan. Section 24-4.5-3-209 lets you prepay in full at any time without penalty; only loans secured by land may carry a penalty of up to 2%, and the prepaid finance charge is not refunded.

Who licenses personal loan companies in Indiana?

The Indiana Department of Financial Institutions issues the consumer loan license through NMLS. Banks and credit unions are exempt.

How do I check an Indiana lender?

Search the company in the DFI license look up or NMLS Consumer Access. If it is not listed and is not a bank or credit union, ask under what authority it lends. See how to verify a lender.

Ask lenders for real offers

Describe the loan you have in mind. LendCedar passes your request to lenders and loan brokers who may contact you with offers; you compare them and decide.

  1. The loan you have in mind: amount, purpose, credit and income.
  2. Your contact details and your consent to be contacted.
  3. A lender or loan broker may contact you with an offer. Nothing is decided until you sign with a lender.

LendCedar is not a lender or a loan broker and does not make credit decisions.

Step 1 of 2

The loan you have in mind

Between $1,000 and $50,000.

Your credit, as best you know

You pay LendCedar nothing. Lenders and loan brokers pay us for requests, and they set their own rates and terms. How we make money.

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