Can a lender in Indiana hold your car title as security for a quick loan? Indiana has no statute written for title loans. One industry reference, Compacom's Indiana summary (updated September 2026), describes them as illegal in the state as currently regulated. What Indiana does have is a consumer credit code that caps interest low enough to rule out the triple-digit title loan sold in other states.

That code is the Indiana Uniform Consumer Credit Code. Its regulator is the Department of Financial Institutions, through its Consumer Credit Division at in.gov/dfi. DFI says a vehicle-title loan can be treated as a consumer loan under that code, so it falls under DFI's licensing, rate limits and complaint process.

The limits a car-secured loan would have to meet

The figures below come from the statute text as published on Justia. On July 1, 2026, Indiana moved these laws from Title 24 into a new Title 37, "Consumer Lending". According to Weiner Brodsky Kider, the move was made "without making substantive changes to the laws", so the limits carry over under new section numbers.

Rule Indiana, as of September 2026
Rate cap, ordinary lender 21% a year on the unpaid balance (IC 24-4.5-3-201)
Rate cap, licensed supervised lender Tiered 36%, 21% and 15% by balance, or a flat 25% a year, whichever is higher (IC 24-4.5-3-508)
Criminal line Charging more than 72% a year is felony loansharking
Add-on interest Precomputed interest banned since June 30, 2020
Minimum finance charge $30
Maximum loan, term, rollovers No title-loan figures in the sources reviewed

Secondary sources disagree on where the tiers break. One puts them at $300 and $1,000, another at $2,000 and $4,000. The statute itself settles it. Compacom lists a $500 maximum and a 14-day term, but those numbers look like small-loan limits and are not confirmed by the statutes. Indiana's small loan is a different product: $50 to $550, secured by your check or debit authorization rather than your car. That is the payday loan in Indiana, not a title loan.

If a lender takes the car

The Indiana BMV says a lienholder "may not sell a repossessed vehicle until after properly obtaining a certificate of title in the lienholder's name". Only the first lienholder can repossess without releases from any later ones.

A separate section bars chasing the buyer for a leftover balance after repossession when the cash price was $4,000 or less (an adjustable figure). It is written for credit sales, though. Whether it reaches a cash loan secured by a car is not settled by these sources. Notice, a right to cure (catching up to stop the repossession) and surplus returned after a sale are not covered here either. Ask DFI before assuming either way.

Online lenders answer to Indiana too

DFI's authority covers out-of-state lenders that advertise to Indiana residents, which includes websites. Check the lender in DFI's licensee listing first. LegalClarity reports that a loan from an unlicensed lender is void, so the borrower owes nothing. Overcharged borrowers can recover the excess plus a penalty of up to three times the finance charge (IC 24-4.5-5-202). Complaints go to DFI's complaint form.

The research behind this page did not cover credit union payday-alternative loans or Indiana assistance programs. A licensed installment lender works under the same rate caps shown above.

Closing on a house soon?

An underwriter reads your bank statements, and recurring payments to a lender show up as debits you will be asked to explain in a letter of explanation. An open loan also adds a monthly payment to your debt-to-income ratio. If you can, pay it off and get the title released before you apply. If it is already open, tell your loan officer now, before underwriting finds it.