Payday Loans in Indiana
Posted on Saturday, July 11th, 2009 at 5:38 pm in Cash Loan Info by State
We all need some extra financial help from time to time. If you are on a low income and you suddenly have to come up with a large sum of money to pay for your child’s hospital stay or an emergency repair to your roof for example, you might be able to get a payday loan.
If you live in Indiana you can apply for a payday loan of up to $550, as long as the sum is not greater than 20% of your gross monthly income. Thus, if you earn $1000 a month, you can get a maximum of $200, while if you earn $3000 a month you can get a payday loan of $550. However, you are permitted to take out two payday loans at a time – one each with two different lenders.
The minimum term for a payday loan in Indiana is 14 days, but there is no upper limit. This means that if you receive your paycheck every two weeks like many Americans, you might well get paid twice within the life of your payday loan. This should make it a lot easier to manage your payday loan and pay it off in full at the end of the loan period. In fact, according to Indiana state law you are not permitted to extend a payday loan, and are obliged to pay it back completely.
There is no restriction on taking another payday loan as soon as you have paid back the previous one, up to a total of six consecutive loans. After that there is a mandatory seven-day cooling-off period before you can get another one. Once you have obtained three consecutive payday loans from one lender, they have to offer you the option of entering a payment plan of no less than four equal repayments. The lender is not allowed to charge for the repayment program.
The fees for payday loans in Indiana are set on a sliding scale. For the first $250 of the loan you can be charged up to 15%, from $251-400 the fee is up to 13% and from $401-550 you pay a maximum of 10%. This means that a $200 loan will cost you $30, a $300 loan costs $44 and the $550 maximum loan will attract a fee of $72. For comparison purposes, the APR (annualized percentage rate) on the industry-standard 14-day $100 loan is 391%.
It is very important that you have enough money in your bank account to pay back the loan and the fee on the due date. If your check bounces or the payday loan company tries to debit your account and is unable to obtain the full payment, you will end up paying extra charges that you probably cannot afford. In addition to a non-sufficient funds (NSF) fee and maybe an overdraft charge from your own bank you will be liable for a $20 NSF fee to the lender. You might also have to pay other charges if the lender can prove that you knowingly wrote a check or authorized a debit without having the funds to cover it.
Related posts:
How it Works
Complete the short form.
We match you with a lender based on their requirements and direct you to their website.
The lender will then display loan rates, terms and conditions for your acceptance.
Cash is directly deposited to your bank account after approval.