Indiana Assets & Opportunity Network
Increasing Asset Acquisition for Low-Wealth Hoosiers


Network Policy

Report Detailing Payday Lending's Financial Drain on Hoosiers Released by A&O, Indiana Institute for Working Families

In 2002, the Indiana General Assembly granted payday lenders an exemption to Indiana’s criminal loansharking statute, which sets a maximum annual percentage rate (APR) of 72 percent. Today, 262 payday loan storefronts make small loans with rates up to 391 percent APR in Indiana.


  • Eighty-six percent of payday storefronts are operated by out-of-state parent companies.

  • Storefront payday borrowers have a median annual income of $19,752 and borrow an average of eight to 10 loans per year.

  • Over the past five years, payday lenders have drained an estimated $322,049,432 in finance charges from these Hoosier borrowers.

  • Payday storefronts in Indiana are disproportionately located in lower-income neighborhoods and communities of color.

  • If this debt had been financed at 36% APR, these Hoosier borrowers and their communities could have benefited from an additional $291,307,803 over the past five years to spend in their local economies.

To read the full report, click here.

Kathleen Taylor