Title Loans in Indiana

Indiana allows payday loans, so many people assume car title loans must be available too. They’re not, at least not in the high-cost form found in some other states. If you’re researching title loans in Indiana, this guide from Auto Cash Title Loans explains how the Indiana Uniform Consumer Credit Code (IUCCC) limits vehicle-secured lending, why the state’s loansharking law matters, and what Hoosiers can do instead.

Are title loans legal in Indiana?

Only within the state’s ordinary consumer loan limits. Indiana has no law that creates a separate license for car title lenders. A loan secured by your vehicle is treated as a regular consumer loan under the IUCCC, and the rate a lender can charge is capped well below the triple-digit APRs typical of title loans.

Indiana’s payday (“small loan”) rules are a separate category and don’t cover title lending. Because a vehicle-secured loan is possible only on ordinary consumer loan terms, we classify Indiana as restricted.

The governing law: the IUCCC and the loansharking statute

The Indiana Department of Financial Institutions (DFI) oversees consumer lenders. The key rules are:

• Supervised loan cap (Ind. Code 24-4.5-3-508): lenders making consumer loans generally may charge a blended finance charge of up to 36% on the smallest portion of the balance, stepping down for larger balances, or a flat 25% a year, whichever is greater. A limited nonrefundable prepaid finance charge may also apply.
• Criminal loansharking (Ind. Code 35-45-7): according to a 2017 DFI advisory letter, charging an interest rate above 72% is a felony. DFI said that, citing a 2000 Attorney General opinion, an agreement with an APR above 72% could be considered void, and the only amounts DFI would consider recoverable are the original principal plus finance charges up to 72%.
• Exemptions are narrow: DFI noted that payday (small loan) finance charges and pawn loans are exempt from the loansharking statute. Title loans are not among the listed exemptions.

Indiana has also tried to apply its rules to lenders across the border. In Midwest Title Loans, Inc. v. Mills (2010), the federal Seventh Circuit held that Indiana could not apply its consumer credit code to an Illinois title lender that made loans in person at its Illinois offices to Indiana residents. That ruling is about loans signed in another state, not loans made inside Indiana.

Why title lenders don’t operate here

Searching for title loans in Indiana mostly turns up out-of-state or online offers, and the reason is the rate math. A title loan business needs to charge far more than 36% to cover its costs and losses, and anything above 72% risks a felony charge. That combination keeps licensed title storefronts out of Indiana. Instead, Hoosiers in border areas sometimes drive to neighboring states to borrow.

Crossing the state line doesn’t remove the risk. If you default, the lender can still repossess your car in Indiana, and the contract may be governed by another state’s law. Our guide to title loans and moving between states covers what to watch for.

Legitimate alternatives in Indiana

Lower-cost choices are usually available. Start with our list of title loan alternatives and consider:

• Credit union Payday Alternative Loans (PALs): federal credit unions may offer PALs of $200 to $2,000 with APRs capped at 28% and a maximum $20 application fee.
• Licensed installment lenders: DFI-licensed consumer lenders can offer personal loans within the IUCCC caps. Verify the license before you apply.
• Vehicle-secured loans from banks or credit unions: if you want to borrow against your car, a regulated lender will typically offer a lower rate and longer term.
• Employer and creditor options: some employers offer paycheck advances, and many utilities, hospitals and repair shops will set up a payment plan if you ask before the bill is past due.
• Local assistance: Indiana 211, township trustee assistance and utility hardship programs can help with specific bills.

How to spot illegal or out-of-state title lenders

Be wary of any company offering a high-cost car title loan to someone living in Indiana, especially online. Warning signs include:

• No Indiana DFI license, or only an out-of-state license.
• An APR above 36%, or monthly fees with no APR disclosed. Anything near or above 72% is a serious red flag.
• A request to hand over your title, a spare key or to install a GPS device before you see the terms.
• Claims that the loan is a “lease,” “membership” or tribal product exempt from Indiana law.
• Pressure to renew or roll over the loan.

Our article on how to spot title loan scams has more tips. If you’re dealing with a problem loan, review your borrower rights and contact DFI. You can also compare how neighboring Kentucky handles title loans.

Title loans in Indiana’s major cities

The IUCCC and the loansharking statute are state law, so a vehicle-secured loan in Indianapolis is held to the same rate caps as one in Fort Wayne or Evansville. No Indiana city licenses title lenders. What differs is which state line is closest, and that matters because many Hoosiers look across the border.

• Indianapolis: DFI’s Consumer Credit Division, which licenses consumer lenders and takes complaints, is in Indianapolis. Check a lender’s license there before you hand over your title.
• Fort Wayne: People searching for title loans in Fort Wayne will mostly find online offers. An APR above 36%, or anything approaching 72%, is a red flag under Indiana law no matter where the website says the lender is based.
• Evansville: Across the Ohio River, Kentucky repealed its title pledge lending law in 2024, so crossing into Kentucky won’t get you a licensed title pledge (see our Kentucky guide).
• Gary and Hammond: The 2010 Midwest Title Loans v. Mills case involved an Illinois title lender serving Indiana residents. Since 2021, Illinois’s Predatory Loan Prevention Act has generally capped consumer loans made in Illinois, including title loans, at 36% APR, so the high-cost Illinois option that case was about has largely gone.
• South Bend: Michigan, just to the north, does not permit title loans (see our Michigan guide).
• Fishers and Bloomington: In Fishers and other suburbs, and in Bloomington, a bank or credit union auto-secured loan is the lawful way to borrow against a car. See our Fishers and Bloomington guides for local alternatives.
• Lafayette: The same IUCCC caps apply. Our Lafayette page covers nearby options.

Frequently asked questions

Can I get a car title loan in Indiana?

Not a typical high-cost title loan from a licensed Indiana lender. You can get a vehicle-secured loan from a bank, credit union or licensed consumer lender at rates within the IUCCC limits.

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

Under Ind. Code 24-4.5-3-508, the general cap is a blended rate up to 36% or a flat 25%, whichever is greater, and the criminal loansharking law makes rates above 72% a felony. Payday small loans follow separate rules.

Is a title loan above 72% APR enforceable in Indiana?

DFI’s 2017 advisory letter says agreements above 72% APR could be considered void, citing an Indiana Supreme Court decision and an Attorney General opinion. How it applies to your loan depends on the facts, so talk to an attorney or DFI.

Can I drive to another state for a title loan?

Some Hoosiers have, and a 2010 federal appeals decision limited Indiana’s ability to regulate loans made in person at an Illinois lender’s offices. Neighboring states’ own rules have changed since then, and the repossession risk follows your car home, so compare alternatives first.

Where do I file a complaint about a lender in Indiana?

Contact the Indiana Department of Financial Institutions, Consumer Credit Division, in Indianapolis. You can also submit a complaint to the federal Consumer Financial Protection Bureau.

Sources

• Indiana DFI Advisory Letter 2017-02: Prepaid Finance Charge and the Loansharking Statute
• Indiana Department of Financial Institutions
• Indiana General Assembly: Indiana Code Title 24
• www.illinois.gov

Last reviewed: October 2026.