Requirements for an Indiana Installment Loan
Specific requirements for installment loans in Indiana may vary slightly between lenders, but interested Bloomington residents will typically need the following.
- Being at least 18 years old
- Having a valid government-issued ID
- Proof of income
- Bank account
- Proof of residence
- Social Security number
Installment Loans in Indiana Explained
The following sections will briefly cover more about installment loans in Bloomington.
Maximum Amount You Can Get From Indiana Installment Loans
In Indiana, residents can generally borrow between $100-$2,000 with a single installment loan. However, these amounts may vary depending on your lender.
Your income, credit score, and employment history will all impact the loan amount you qualify for.
Indiana Installment Loan Interest Rates
Indiana Statutes 24-4.5-3-201 governs installment loan interest rates in Bloomington.
Here are some key points to note:
- Maximum Interest Rate: 25% annual on unpaid balance.
- Flexibility: Various calculation methods are allowed (as long as it stays under 25%).
- Revolving accounts: Max 2.083% monthly on the outstanding balance.
- Minimum Charge: $30 for non-revolving loans (if earned interest is less than $30).
- Prepaid Charge: Up to $50 for unsecured loans.
Can You Get an Installment Loan With Bad Credit
Even with bad credit, you can still qualify for an installment loan in Bloomington.
Some lenders specialize in providing loans to borrowers with bad credit, but they may charge a higher interest rate on such loans.
Conversely, taking out a loan can also serve as a chance to improve your credit score.
How to Get an Installment Loan With Our Third-Party Lenders
We can make it easier to start the loan inquiry process. Here’s how:
- Fill out a Form: Fill out our online inquiry form first. Your request will be forwarded to a network of third-party lenders who can offer loans tailored to your cash needs.
- Document Submission: Provide the necessary documents required by the lender. A selected lender will send you an offer.
- After Pre-approval: Review the offer and sign it. Afterward, the lender will disburse your money as soon as possible.
Installment Loan Laws in Indiana
The Indiana Department of Financial Institutions (DFI) oversees loan laws in Bloomington.
Lenders may contract for a finance charge of up to 25% per year on unpaid principal balances. This can be calculated in various ways (add-on, discount, etc.), provided the effective rate does not exceed the maximum permitted.
For judgments, the contract rate cannot exceed 8%, or it defaults to 8% if no contract exists.
Conclusion
Installment loans can be a helpful financial tool in Bloomington, Indiana, for financial emergencies or planned purchases.
Ready to see if an installment loan is right for you? Fill out our inquiry form to get started!
FAQs
This section addresses common questions about installment loans in Bloomington, Indiana.
The APR is calculated by dividing the total finance charges (interest + fees) by the loan amount, then dividing by the loan term in years and multiplying by 100 to express it as a percentage.
Failing to pay your loan off on time can result in penalties like higher interest rates on subsequent loans and damage to your credit score.
To pay off installment loans faster, ensure you create and follow a strict budget for the duration of the loan term. Consider finding an extra source of income to make earlier payments.
