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State rules

Indiana auto loan rules

Indiana has 566 Census places covered on AutoLoanable, with a combined estimated population of 4,621,396. Vehicle financing in Indiana is governed by state law — the interest-rate caps, title-lending rules, sales-finance licensing and the regulator that oversees them. The sourced figures below apply to every car loan made to a borrower in the state.

By the AutoLoanable Editorial Team · Last updated 2026-09-17

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7% statewide state vehicle sales tax
No statute vehicle title loans
DFI state regulator
Small Loan License… lender licensing

Key rules for car buyers in Indiana

RuleDetailSource
Maximum legal interest rate (usury cap) See the latest published figure
value_text left null: Indiana Code IC 24-4.5-3-508 sets tiered maximum loan finance charges for supervised loans; the official code site renders client-side and the figure could not be confirmed from a fetched page, so no figure is asserted.		 Indiana General Assembly (Indiana Code)
as of 2026-09-17
Vehicle title loan status Indiana has no standalone title-loan statute; vehicle-title-secured loans are consumer loans under the Indiana UCCC — capped at 25% per year, or up to 36% on the first $2,000 for licensed supervised loans.
Source says: "a lender may contract for a loan finance charge, calculated according to the actuarial method, not exceeding twenty-five percent (25%) per year on the unpaid balances of the principal" License category: Consumer Loan License (supervised lender) — Indiana Department of Financial Institutions.		 Indiana General Assembly — Ind. Code § 24-4.5-3-201
as of 2026-09-17
Sales finance / installment lender licensing Small Loan License required (IUCCC; separate Consumer Loan License for IC 24-4.5-3 loans)
Source says: "unless a person is a supervised financial organization or has first obtained a small loan license from the Department of Financial Institutions (DFI)". No separate motor-vehicle sales finance act — motor vehicle retail credit sales are governed by the Indiana Uniform Consumer Credit Code (retail credit sellers regulated by the Indiana DFI) (Ind. Code art. 24-4.5 (esp. IC 24-4.5-2)).		 Indiana Department of Financial Institutions
as of 2026-09-17
State lending regulator Indiana Department of Financial Institutions (DFI), Consumer Credit Division
Source says: "The industries regulated by the Consumer Credit Division are: non-depository small loan ("payday") lenders; traditional installment lenders".		 Indiana Department of Financial Institutions
as of 2026-09-17
Sales tax on vehicle purchases 7% state rate; no local sales taxes.
Source says: "If your business sells goods or tangible personal property, you'll need to register to collect a seven percent sales tax."		 Indiana Department of Revenue
as of 2026-09-17

How to use these rules

  1. Check the ceiling before you compare offers

    If a quoted APR looks extreme, compare it against the Indiana cap above — and note that a specific statutory exemption can apply to a particular product.

  2. Verify the lender is licensed

    Use the regulator named in the table to confirm the lender or sales-finance company may legally serve borrowers in the state.

  3. Know what is secured against your car

    A vehicle title loan is secured by the car itself. If the state permits it, understand the repossession terms before you sign anything.

  4. Budget for tax and fees separately

    Sales tax and title fees are financed along with the car, so they raise the amount you borrow — and therefore the interest you pay on them.

Cities in Indiana

We cover 566 Census places in Indiana.

Frequently asked questions

What interest rate can a lender charge on a car loan in Indiana?
It depends on the product and the statute that governs it. The sourced table on this page lists Indiana's usury cap, its motor-vehicle sales-finance rules and the licensing requirements, each with its publisher and a link to the primary source.
Are title loans legal in Indiana?
Vehicle title lending is regulated state by state; some states permit it under a licensed lender, some cap it, and some prohibit it outright. See the sourced figure on this page for the current position, and confirm it with the state regulator before you sign anything.
Do I need a license to finance a car in Indiana?
Most consumer lenders and motor-vehicle sales-finance companies must be licensed by the state regulator named on this page. You can verify a lender's licence with that regulator before you sign anything.

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