Indiana Payday Loans Made Easy
Taking on a fast cash loan is not something that anyone wants to do in an ideal world. Payday loans as they are commonly called, can be a really expensive way to borrow money and it is easy to get caught in a cycle where you pay so much to borrow that you never get caught up and you find yourself needing to continue making multiple loans. This has led many financial experts to decry payday loans and to urge people to stay away from this type of borrowing.
The problem, however, is that we don't live in an ideal world. There are lots of situations where you have an expense that has to be paid right now and that you cannot wait to pay until you get your next paycheck. If your car breaks down and you can't get to work without it, for example, or if your electricity is about to get shut off, you cannot wait to resolve these issues until your payday arrives.
Fast cash loans provide the solution for those situations where you have a pressing, important need for short - term cash to pay a necessary expense. Payday loans meet this need for many reasons. First and foremost, almost anyone can get accepted for a payday loan. Individuals with poor credit are locked out of more conventional financing options because they may be unable to get a credit card or a personal loan. A payday loan doesn't require you to have good credit or any credit at all. As long as you have a job and a bank account, a payday loan should be available to you.
Payday loans can also to be obtained quickly and they are one of the few options available to borrow quick cash just on a short - term basis.
The problem, of course, is that you do pay a lot for the privilege of taking a payday loan. The amount you pay is expressed in terms of annual percentage rate (APR) even though you actually pay via a fee for originating the loan and you typically have the loan just for a short time and for nowhere near a year.
Expressing the costs of the loan in terms of the APR simply lets you compare payday loans to other financial products, and when you do that it is not a very favorable comparison. The payday loan might have an APR of 450 percent or higher, compared to an APR on a mortgage of less than 6 percent or on a credit card of less than 30 percent. These are the high costs that financial experts lament when discussing the payday loan industry.
Indiana Laws on Payday Loans
States regulate payday loans in order to keep people from falling into serious debt due to these types of financial products. Indiana addresses the issue of payday loans in sec. 24 - 4.5 - 7 - 101. According to the laws in Indiana, payday loans must be for an amount between $50 and $500. The loan that you take may not exceed 20 percent of the borrower's gross monthly income. The loan must have a tenure/term of at least 14 days and there are no rollovers permitted of the loan.
Indiana fast cash lenders are restricted in what they can charge when you borrow. If your loan is between $0 and $250, they can charge 15 percent. If your loan is between $251 and $400, they can charge 13 percent. If your loan is between $401 and $500, they can charge 10 percent. This works out to an APR of 390 percent on a 14 - day, $100 loan.
You are allowed to take a maximum of two different payday loans at one time and this must be with different lenders. After you take three consecutive loans, the lender must extend a payment plan of four equal installments without charging you any extra costs.
Stay Educated on Indiana Payday Loans
If you are considering a fast cash Indiana loan, you should be aware of what the law does and does not allow. Understanding the law helps you to see where you are protected and what issues you need to be concerned about in order to protect yourself financially