The loan industry has become more competitive, and many avenues exist for those with both good and bad credit in Indiana. There are several ways an Indiana resident can get a smaller loan to help with an emergency without going to a bank.
Besides asking family and friends for help, or going to your bank or credit union, there are four legitimate ways someone can get a loan in Indiana to cover emergencies.
All four can get you money either the same day or the next. The choice you make depends on your situation, your job, and your emergency.
Auto title lenders look primarily at your car's value to determine the loan amount. This type of lender asks basic employment and pay questions and will ask for personal references. However, your title is your credit, and they will loan up to a certain percentage of your car's value.
You will be required to make monthly payments and can pay off the loan at any time.
Payday lenders require you to have a regular job to loan you money. Most loan amounts are smaller, from $500 to $1,500, because you are expected to pay it back on your next payday.
Your loan amount depends on your income. Therefore, using pay stubs or tax returns, you must have proof of that.
Pawn brokers will give you money and hold onto something you have as collateral. They typically offer small loan amounts of under $1,000 and greatly undervalue your item.
Your loan amount depends on the item you are pawning. You can reclaim your item by paying off the loan or you can renew your pawn every 30 days. Failure to pay the loan or renew the instrument will allow the pawn broker to sell your item.
Online lenders, like Simple Fast Loans, offer installment loans in Indiana and lines of credit. These loans allow you to pay monthly. An installment loan is a single loan. Payments are in equal amounts and are due on the same day of the month, so there are no surprises. That makes it easy to budget.
A line of credit can be used at different times for smaller and larger purchases if payments are made on time. It's a set amount, but you don't have to use it all at once. For example, you can use $200 of it for a repair, pay on that monthly, and then use $100 for another repair.
A positive aspect of online loans over other types of loans is that they have a higher range of loan amounts. For example, Simple Fast Loans can lend between $200 to $3,000 with no collateral.
It is also easy to apply online from the comfort of your home. A decision is made in minutes, and you can receive your money in your bank account the same day or the next business day.
These days have become difficult for many people with high inflation, escalating gas prices, and an uncertain economy. Many don't have savings for emergencies, but the unexpected does happen.
Loans like these can be used for a surprise home or car repair, a medical emergency, utility bills, or replacing a home appliance. These are a few examples of urgent needs that can't wait until you save money.
The State of Indiana has the Indiana Department of Financial Institutions, where consumers can determine if their lender is licensed. This can easily cut down on illegal operations and helps protect the public.
Anyone can find out if the financial institution has a state charter, if the payday, title lender, or pawn broker is licensed by the IDFI, and even if a check casher has a license to cash paychecks.
The state has a license link where those considering a loan can search for qualified lenders. All those licensed in the state are on the site. A lender that doesn't qualify as a financial institution is noted as a "licensed lender."
This would include "money transmitters," which some online lenders are called because they aren't banks or financial companies. However, they don't cover cryptocurrency transactions.
To find listings for those, go to the "consumer credit licensee listings" site and the "money transmitter."
Each lending company will have its own repayment methods, so you must read the loan agreement to understand the repayment terms. Generally, some lenders, like pawn brokers, prefer cash paid in person.
Others, like payday lenders and title lenders, will allow you to pay in person, with a debit card, using an app, or have it automatically withdrawn from your bank account.
Online lenders sometimes allow you to pay online with a debit card or will have payments automatically withdrawn from your bank account on a specific day. You will need to contact your lender to find out their policies.
These loans are popular because they don't require all the information and credit checks that traditional lenders like banks require. In addition, banks sometimes take a week or two to get a loan, while these lenders can get you money in a day or so.
Being able to manage your loan online or through an app is another plus.
Finding a lender in Indiana that you feel comfortable with is as important as what they can offer in terms of a loan. You want to know you are dealing with an honest lender with a transparent agreement. A little research will help you with that decision.