Payday loan lenders in Indiana will likely experience increased transaction volume and profitability as a result of Indiana’s move to pass new laws allowing payday loan lenders to charge fees three times the existing rates previously in place.
Basically, Indiana legislators will establish longer-term payday loans for between $605 and $1,500.
Payday loan state law required that loans not exceed interest rates of 72 percent per year. But, by enabling shorter length payday loans for 7-14 days, payday lenders can offer consumers more choices for handling financial emergencies.
This is great news for consumers in Indiana!
Indiana payday loan lenders employ “unsecured consumer installment loans.” APR’s (Annual Percentage Rates) tier up to approx. 222 percent.
Indiana payday loans range from three to 12 months with loan principals of $605 to $1,500.
As an example, a 3 month payday loan – installment loan – having a loan principal of $605 results in the payday loan borrower paying $144 in monthly maintenance fees and $91 in a “nonrefundable original fee.” Total payday loan payback is $840. (Beats asking friends or family for money!)
Bottom line: these Indiana payday loans will provide residents of Indiana more financial choice when facing emergencies.
Licensed Indiana payday loan lenders are barred from charging more than 20 percent of the borrower’s monthly gross income and an Indiana payday loan borrower can have one installment loan at a time.
What do you think about the new business opportunity for entrepreneurs to loan money to the masses in Indiana? Email Jer@PaydayLoanUniversity.com
Want to start a loan business in Indiana? Learn how here: PaydayLoanUniversity.com