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Usury Laws in Indiana

Indiana applies an 8% rate when the parties did not agree on one, and charging more than twice the 36% consumer loan rate is the felony of loansharking.

Last checked . General information, not legal advice.

Indiana at a glance

Legal rate (no rate agreed)
8%
Judgments bear the contract rate capped at 8%, or 8% if there was no contract (IC 24-4.6-1-101).
Criminal usury
Over twice the 36% rate (72%): Level 6 felony
Loansharking is a Level 5 felony if force or the threat of force is used to collect.

Sources

Last checked

The rules in Indiana

What interest rate applies in Indiana when no rate was agreed?

Legal rate (no rate agreed) in Indiana: 8%. Judgments bear the contract rate capped at 8%, or 8% if there was no contract (IC 24-4.6-1-101).

When is charging high interest a crime in Indiana?

Criminal usury in Indiana: Over twice the 36% rate (72%): Level 6 felony. Loansharking is a Level 5 felony if force or the threat of force is used to collect.

Where do the Indiana usury laws come from?

The rules above come from IC 24-4.6-1-102, IC 24-4.6-1-101, IC 35-45-7-2 and IC 24-4.5-3-508. Each source is linked on this page. We last checked them in October 2026.

What this means in practice

Put the interest rate in writing. Many usury statutes set one limit for written agreements and a different, often lower, rate when nothing was agreed in writing. A signed promissory note or loan agreement that states the rate, the payment schedule and what happens on late payment avoids most disputes.

Count every charge, not only the stated rate. Courts may treat fees, points, required extras or a discount taken from the amount lent as interest when deciding whether a loan is usurious. A loan with a modest rate and large fees can still cross the limit.

Check who the lender is and what the loan is for. Usury limits often do not apply, or apply differently, to banks, licensed consumer lenders, credit card issuers, larger loans and loans to businesses or corporations. A rule written for loans between individuals may not cover your situation, so read the statute and its exceptions.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.