Find the Best Personal Loans in Indianapolis, IN

How to choose a personal loan in Indianapolis

Borrowers in Indianapolis can obtain a personal loan from several different kinds of lenders. These include private lending companies, banks and credit unions, peer-to-peer lenders or borrower-specific lending companies.

One of the top reasons to take out a personal loan in Indianapolis is to pay for vehicle-related expenses. Personal loans are also commonly used to pay bills, cover emergencies, finance tuition and consolidate high-interest debt.

When considering personal loans in Indianapolis, understand that there are several different kinds. Your financial situation, including your credit score, income and current expenses will determine which you qualify for and which is appropriate.

Whichever type of personal loan in Indianapolis you choose, be aware that in Indiana, lenders have limits in place on interest, delinquency charges, prepayment penalties and other fees and conditions. For example, maximum rates on a $3,000 loan can’t exceed 36 percent for the first $960, plus 21 percent for the rest. The Department of Financial Institutions reminds borrowers that these are maximum amounts; many borrowers can find significantly lower ones.

How to apply for a personal loan in Indianapolis

The application process for a personal loan in Indianapolis is designed to help the lender figure out how likely you are to repay, based on factors like your credit history, income and monthly expenses.

Before you fill out an application, it’s useful to check your credit score. Lenders may have a minimum credit score to apply for personal loans. If you have a poor credit score, typically below 630, you will face higher interest rates and may be best off applying with peer-to-peer lenders or credit unions.

You will likely have several options for filling out an application. Most lenders allow you to enter information online, but you can also opt for a phone application or even apply in person at a brick-and-mortar institution like a bank or credit union.

In some cases you may go through a pre-qualification process that previews a loan offer. Be prepared to supply information such as:

• Social Security number
• Monthly financial obligations (rent, student loans, car payments, etc.)
• Income, with employer information
• Previous addresses

Once you’ve obtained offers, compare the loan amounts, interest rates and monthly payments. Do not skip over the fine print, which will have descriptions of any fees, like origination fees, or conditions, such as automatic withdrawal of payments. Be certain to ask questions about anything you have trouble understanding.

Before your loan is approved, you will have to provide more information, such as proof of income and address. The lender will also do a hard pull of your credit.

After your loan is finalized, funds are transferred quickly, usually within a week — and sometimes within a day or two.