Best Personal Loans in Indiana for 2024

Q: What are some personal loan red flags to look out for?

When considering personal loans , it's important to be wary of red flags such as high APRs, strict repayment penalties and a lack of transparency about the loan's origin. A high frequency of poor consumer reviews and a lack of information about the credit impact of the application process are also some causes of concern.

With a MoneyGeek score of 98, First Tech is the best place to get a personal loan in Indiana, featuring top-notch customer service, competitive interest rates and a broad selection of loan terms.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Benjamar Gabawa

Updated: November 21, 2024

Advertising & Editorial Disclosure

MoneyGeek picked the best lenders in Indiana based on their reputations, interest rates and ease of application. Scoring 98 out of 100, MoneyGeek found that First Tech is the best personal loan lender in the state. Its customer education, service, competitive rates and fees gave this lender an edge. Close behind is PenFed, earning a MoneyGeek score of 96 out of 100 due to its top-notch loan repayment terms and relatively low rates and fees.

If you are an Indiana resident with a credit score of around 713, you're likely to receive more flexible loan terms. Factors like your debt-to-income ratio and income history also matter when looking for a personal loan.

Best PersonalLoan LendersIndiana

2024

Best Personal Loan Lenders in Indiana

Best Overall - First Tech

Runner-Up - PenFed

Best for Bad Credit - Happy Money

Best for Debt Consolidation - Truist

MoneyGeek scores personal loan lenders with a point-based system designed to give a comprehensive overview of each lender’s performance in critical areas that matter to borrowers, such as customer service and annual percentage rate (APR) ranges.

We completed our analysis of banks and lenders licensed to do business in Indiana as of April 2024. We also considered financial companies that partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

Overall Best Personal Loan Lender in Indiana

First Tech

98MoneyGeek Score
8.94% to 18.00%APR Range
UndisclosedMinimum Credit Score
$500 to $50,000Loan Amount Range
6 to 84 monthsRepayment Terms

First Tech is MoneyGeek's top personal loan lender in Indiana, with a MoneyGeek score of 98 out of 100. Offering APRs from 8.94% to 18.00%, which are among the lower end compared to its competitors, First Tech stands out in customer service and education as well as rates and fees. This financial institution features competitive rates, an exceptional educational approach for consumers and accessible customer service. Additionally, First Tech has flexible repayment terms of six to 84 months.

Pros

Insured by the National Credit Union Administration (NCUA)
Provides granular APR data for a variety of loan terms
Lots of educational resources available for consumers

Cons

Membership is a prerequisite for application
The loan application process could be better explained
A scarcity of disclosed information on credit score prerequisites

SEE THE BEST PERSONAL LOANS IN INDIANA CITIES

Runner-Up for Best Personal Loan Lender in Indiana

PenFed

96MoneyGeek Score
7.99% to 17.99%APR Range
UndisclosedMinimum Credit Score
Up to $50,000Loan Amount Range
Up to 60 monthsRepayment Terms

According to MoneyGeek, PenFed Credit Union is Indiana's second-best option for personal loans, with an impressive MoneyGeek score of 96 out of 100. PenFed offers a competitive APR range of 7.99% to 17.99%, which is favorable compared to others in the market. It stands out for its generous repayment terms of up to 60 months. It excels particularly in fees, rates, loan terms and flexibility, demonstrating its commitment to providing affordable and adaptable financing solutions to its members.

Pros

Offers some of the lowest APRs available
No origination fee
Provides granular APR data for a variety of loan terms

Cons

No information provided about credit score requirements
$50 minimum monthly loan payment

UNDERSTAND YOUR DEBT-TO-INCOME RATIO

Your monthly debt payment relative to your monthly gross income is called your debt-to-income ratio, or DTI.

Most lenders prefer a debt-to-income ratio of 35% to 40% or below for secured loans and 40% to 45% or below for unsecured personal loans. A debt-to-income ratio above 50% is considered high, so approval may be more difficult, or your loan may have higher interest rates.

— Alvin Yam, CFP®

Calculate Your Monthly Loan Payment

Our personal loan calculator can help you assess loan options by providing detailed insights into your monthly payments and overall costs, ensuring you have the necessary information to make an educated decision about your finances.

Personal Loan Calculator

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Updated: Dec 21, 2024

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Best Personal Loan Lender in Indiana for Bad Credit

Happy Money

94MoneyGeek Score
11.72% to 17.99%APR Range
640Minimum Credit Score
$5,000 to $40,000Loan Amount Range
24 to 60 monthsRepayment Terms

With a MoneyGeek score of 94 out of 100, Happy Money is MoneyGeek's pick for the best personal loan provider in Indiana for borrowers with low credit scores. Although not a traditional lender, Happy Money partners with various federally insured financial institutions to offer competitive rates. Its APR range of 11.72% to 17.99%, with a minimum credit score of 640, is noteworthy among available options. Happy Money excels in customer service and providing clear information upfront, making it a standout choice for personal loans.

Pros

Works with 10 federally insured lenders to originate all loans
Transparent eligibility requirements, including credit score minimum
The application process doesn't require any fees

Cons

The lenders they work with charge an origination fee
Longer time to wait for loan approval compared to other lenders analyzed

How Does MoneyGeek Score Lenders for Bad Credit Loans?

We use our standard methodology and weights, but we limit our analysis to lenders that explicitly mention their minimum credit score requirements on their public websites. Only 12% of lenders that offer personal loans fit this criteria.

We filtered our analysis to include lenders with minimum credit score requirements between 580 and 640, which happens to meet Experian's definition of fair credit. Our research did not find any published minimums lower than 580.

It's still possible to get a personal loan if you have lower credit than this, but you will not have access to the best interest rates and terms available. Some lenders offer prequalification, which doesn't affect your credit score, to help you understand what you might be eligible for.

Best Personal Loan Lender in Indiana for Debt Consolidation

Truist

96MoneyGeek Score
8.74% to 17.39%APR Range
UndisclosedMinimum Credit Score
From $3,500Loan Amount Range
24 to 60 monthsRepayment Terms

MoneyGeek's pick for the best personal loan lender for debt consolidation in Indiana is Truist, with a MoneyGeek score of 96 out of 100. Truist's APR range of 8.74% to 17.39% is competitive, leaning towards the lower end among the rates others offer. It particularly stands out in the application process, approval speed and the competitiveness of interest rates and fees. These advantages clearly support customers seeking favorable and convenient loan arrangements.

Pros

FDIC insured
No origination fees
High minimum loan requirement compared to competitors

Cons

Difficult to qualify for the lowest rates
High minimum loan requirement compared to competitors

How Does MoneyGeek Score Lenders for Debt Consolidation?

We looked only at interest rates and fees (60% weight) and loan terms and flexibility (40% weight). If the winner in our analysis also won Best Overall or Runner-Up, we selected the next-best winner for diversity.

Some lenders have minimum interest rates that are higher for debt consolidation loans compared to their rates for general-use loans. When consolidating debts, finding the lowest interest rate possible will help you save the most money over the long term.

IS INTEREST ON PERSONAL LOANS TAX DEDUCTIBLE?

Interest on personal loans is generally not tax deductible, as personal loans are considered consumer debt. But there are some exceptions where the interest may qualify:

When consolidating high-interest qualifying debts like credit cards or student loans, if used to pay off those debts.
If used for home improvements that increase the home's value.
If the loan proceeds can be demonstrated as used exclusively for business expenses or starting a business.
In some cases, if the loan is used for investment purposes related to income-generating assets.

— Alvin Yam, CFP®

Impact of Credit Score on Loan Repayment in Indiana

Lenders assess your credit profile, income and debt-to-income ratio to determine your loan terms and APR. As an Indiana resident seeking a personal loan, having a higher credit score before applying can significantly improve your loan terms.

Refer to the table below to understand how different credit scores may affect your monthly loan payments.

Data filtered by:Results filtered by:

Credit Band

Select

Credit Band:690 to 719

Loan Amount

Select

Loan Amount:$2,000


$348	6
$180	12
$97	24
$69	36
$55	48
$47	60
$42	72
$38	84

This table approximates monthly payments calculated using median personal loan interest rates typical for various credit score ranges. Please remember that these numbers are median estimates provided for general guidance. They should not be taken as precise rates for everyone in each credit score category. Actual interest rates can differ due to lender-specific policies, prevailing market conditions, and unique borrower profiles.

Pros and Cons of Personal Loans in Indiana

Personal loans offer diverse advantages, such as the potential for lower interest rates and the convenience of consolidating multiple debts into a single payment. They also provide the flexibility to cover various financial needs — from unexpected expenses to funding life's milestones. However, it's important to be aware of the potential drawbacks, such as origination fees and the risk of asset loss with a secured personal loan.

For an in-depth understanding, considering the pros and cons of personal loans is advisable.

THE PROS AND CONS OF PERSONAL LOANS

Lower interest rates than many credit cards
Ability to consolidate multiple debts into one
Rapid approval and fund disbursement
Opportunity to add a co-signer for potentially better loan terms

Additional expense from origination fees
Penalties for early loan repayment
Risk of losing assets with secured loans
Encouragement of excessive debt through easy approvals

FAQ About Personal Loans in Indiana

If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.

Who is the best lender in Indiana for personal loans?

The best lender in Indiana for personal loans according to MoneyGeek is First Tech with a MoneyGeek score of 98 and an average APR of 13.5%.

Where is the best place to get a personal loan in Indiana?

In Indiana, you can get personal loans through online lenders, banks and credit unions. Local credit unions like Purdue Federal Credit Union, IU Credit Union and Community Wide Federal Credit Union offer in-person services for those preferring local access.

Who has the best personal loan interest rates in Indiana?

PenFed offers the lowest APR for personal loans in Indiana, starting at 7.99% according to MoneyGeek's analysis. It's important to note that the best low rate for you may differ based on your individual needs and financial situation, and securing such rates typically requires an excellent credit score.

What can I use a personal loan for in Indiana?

In Indiana, you can typically use personal loans for various needs such as consolidating debt, covering emergency circumstances, or financing home or auto repairs. However, funds from personal loans cannot be used for college tuition or illegal activities.

What are some personal loan red flags to look out for?

When considering personal loans, it's important to be wary of red flags such as high APRs, strict repayment penalties and a lack of transparency about the loan's origin. A high frequency of poor consumer reviews and a lack of information about the credit impact of the application process are also some causes of concern.

Do lenders consider income level when applying for a personal loan?

Yes, lenders consider income level when applying for a personal loan, but they also evaluate other factors such as your debt-to-income ratio, employment history and credit report. Additionally, opening new lines of credit while applying for a personal loan may affect your application's success.

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About Zachary Romeo, CBCA

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

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sources

Experian. "What is the Average Credit Score in the US?." Accessed October 13, 2024.

The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.