Indiana § 37-3-3-6 - Limits based on borrower's income; security; partial payments; payments; loan documents; recision; renewal prohibited
Full text of Indiana Indiana Code § 37-3-3-6 — Limits based on borrower's income; security; partial payments; payments; loan documents; recision; renewal prohibited, with citation guidance and answers to common questions.
§ 37-3-3-6. Limits based on borrower's income; security; partial payments; payments; loan documents; recision; renewal prohibited
Sec. 6. (a) A lender is prohibited from making a small loan to a borrower if the total of:
(1) the principal amount and finance charges of the small loan to be issued; plus
(2) any other small loan balances that the borrower has outstanding with any lender;
exceeds twenty percent (20%) of the borrower's monthly gross income.
(b) A small loan may be secured by only one (1) check or authorization to debit the borrower's account per small loan. The check or electronic debit may not exceed the amount advanced to or on behalf of the borrower plus loan finance charges contracted for and permitted.
(c) A borrower may make partial payments in any amount on the small loan without charge at any time before the due date of the small loan.
(d) After any payment is made on a small loan, whether the payment is made in part or in full before, on, or after the due date of the small loan, the lender shall give a signed and dated receipt to the borrower making a payment showing the amount paid and the balance due on the small loan.
(e) The lender shall provide to each borrower a copy of the required loan documents before the disbursement of the loan proceeds.
(f) A borrower may rescind a small loan without cost by paying the cash amount of the principal of the small loan to the lender not later than the end of the business day immediately following the day on which the borrower receives the proceeds.
(g) A lender shall not enter into a renewal with a borrower. If a loan is paid in full, a subsequent loan is not a renewal.
[Pre-2026 Revision Citation: 24-4.5-7-402.]
As added by P.L.115-2026, SEC.97.
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 37-3-3-6
What does Indiana Code § 37-3-3-6 cover?
Section 37-3-3-6 ("Limits based on borrower's income; security; partial payments; payments; loan documents; recision; renewal prohibited") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Indiana § 37-3-3-6?
A common citation format is "Indiana Code § 37-3-3-6" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 37-3-3-6 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.