Indiana Pawn Shops

Indiana Pawn Software
Built for the 3% + 20% Framework

PawnSmarts comes pre-configured for Indiana — separate 3% interest and 20% service-charge fields, 60-day redemption tracking, partial-payment management, and the well-bound register IC 28-7-5 requires. From $89/month.

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Indiana pawn law (IC 28-7-5) treats interest and service charges as two separate numbers: interest is capped at 3% per month and a service charge of up to 20% per month may be added, for a 23% total monthly finance charge, with a 60-day redemption period after default and mandatory partial payments down to $1.00. PawnSmarts comes pre-configured for that framework, so when you open a new ticket in Indianapolis, Fort Wayne, Evansville or anywhere in the state the 3% interest and 20% service charge calculate in their own fields, the 60-day redemption clock starts on the default date, and every transaction lands in a digital register law enforcement can inspect. No spreadsheet, no second module, no math by hand.

Indiana's 3% + 20% structure: interest AND service charge

Indiana law caps interest at 3% per month (IC 28-7-5-28), but a pawnbroker may also charge up to a 20% per month service charge for storage and security. On a $100 loan that's $3 in interest plus $20 in service charge — a 23% total monthly finance charge. These are not the same thing, and Indiana law keeps them distinct. Generic pawn software gives you one "finance charge" field; that doesn't match the statute. PawnSmarts tracks both charges separately, the way Indiana writes them.

What makes Indiana different. Three rules shape every Indiana pawn ticket: interest (3%) and service charge (20%) are billed and tracked as separate line items totaling 23% per month; a defaulted item carries a 60-day redemption period before forfeiture; and partial principal payments of at least $1.00 must be accepted before maturity.

3% interest + 20% service charge = 23% total monthly

Enter the principal once and PawnSmarts populates both charges every month. On a $100 loan: $3.00 interest (3%) plus $20.00 service charge (20%) equals a $23.00 total monthly finance charge. Each component is itemized on the pawn ticket and in your reports, so your books mirror what IC 28-7-5 actually distinguishes.

Interest — 3%

$100 × 0.03 = $3.00. Capped at 3% per month under IC 28-7-5-28, tracked in its own field.

Service Charge — 20%

$100 × 0.20 = $20.00. Up to 20% per month for storage and security, kept separate from interest.

Total Monthly

$3 + $20 = $23.00 (23%). Itemized automatically on the ticket — no single lumped "finance charge."

60-day redemption period after default

Under IC 28-7-5-30, when a loan defaults the pawnbroker retains possession for 60 days following the default date. During that window the pledgor can still redeem the item and the pawnbroker cannot sell it. After 60 days without redemption, the pledgor forfeits all rights and the pawnbroker acquires absolute ownership. PawnSmarts calculates the 60-day period automatically from the default date and flags items approaching forfeiture so you never sell early or hold too long.

Example timeline. Loan date Jan 1, 2026 · due date (30 days) Jan 31, 2026 · default date Feb 1, 2026 if unpaid · 60-day redemption period Feb 1 – Apr 1, 2026 · forfeiture Apr 2, 2026 if still not redeemed. PawnSmarts tracks all of these dates for you.

Partial payments accepted (minimum $1.00)

Indiana requires pawnbrokers to accept partial principal payments of at least $1.00 before maturity (IC 28-7-5-24), provided accrued interest and charges are also paid. When a pledgor makes one, the pawnbroker credits the principal payment on the pawn ticket. PawnSmarts handles the sequence and the bookkeeping:

Indiana licensing and recordkeeping

Indiana licenses pawnbrokers through the Department of Financial Institutions (DFI) under IC 28-7-5. The Indiana Pawnbrokers Association, formed in 1991, represents licensees across the state. The statute also dictates exactly how transactions must be recorded — and PawnSmarts is built to satisfy it.

What Indiana requires

  • DFI license application and approval
  • A well-bound register for all transactions (IC 28-7-5-16)
  • Entry within one hour of the transaction
  • Ink entries — no erasures, obliterations or defacement
  • Records open to inspection by law enforcement

What PawnSmarts provides

  • A digital well-bound register equivalent
  • Time-stamped transaction entry tracking
  • Separate 3% interest and 20% service-charge fields
  • 60-day redemption tracking from default date
  • Partial-payment management down to $1.00

Indiana mandatory police reporting typically runs through platforms like LeadsOnline, and PawnSmarts exports to it out of the box. For the full picture of state rules and how they differ, see our US state licensing guide and the states we serve.

Pricing built for Indiana shops

No lifetime-license guesswork and no surprise renewal fees. PawnSmarts is a clear, no-contract plan you can start today and cancel anytime:

Already running something else? Switch in under 24 hours. We migrate your existing Indiana loans, customers and inventory for a one-time $395 — done for you. No setup fee, no exit fee, no contract of any kind. PawnSmarts also works offline and auto-syncs, so a dropped connection never stops a transaction. New to pawn software? Start with what pawn shop software does.
Pawn rules near Indiana. Each state writes its own tickets, rates, holding periods and reports: Illinois · Kentucky · Michigan · Ohio. Or see every state on the states we serve page, and the full US licensing guide.

Frequently Asked Questions

What is Indiana's maximum pawn interest rate and service charge?

Indiana law caps interest at 3% per month (IC 28-7-5-28), and pawnbrokers may also charge up to a 20% per month service charge for storage and security — a 23% total monthly finance charge. These two charges are kept distinct under Indiana law and must be tracked and itemized separately. PawnSmarts populates both charges automatically from the principal on every ticket.

How long does a defaulted Indiana pawn loan remain redeemable?

Under IC 28-7-5-30, when a pawn loan defaults the pawnbroker must retain the item for 60 days following the default date, during which the pledgor can still redeem it. After 60 days without redemption, the pledgor forfeits all rights and the pawnbroker acquires absolute ownership. PawnSmarts calculates the 60-day period from the default date and flags items approaching forfeiture.

Must Indiana pawnbrokers accept partial payments on loans?

Yes. Indiana requires pawnbrokers to accept partial principal payments of at least $1.00 before maturity (IC 28-7-5-24), provided accrued interest and charges are also paid. When a partial payment is made, the pawnbroker credits the principal on the pawn ticket and future charges recalculate from the new balance. PawnSmarts handles the sequence and bookkeeping automatically.

What recordkeeping does Indiana require for pawn transactions?

Indiana requires pawnbrokers to maintain a well-bound register for all transactions (IC 28-7-5-16), with entries made within one hour of the transaction in ink — no erasures, obliterations, or defacement. Records must be open to inspection by law enforcement. PawnSmarts provides a digital equivalent, time-stamped transaction records, and LEADS Online export for police reporting.

What does pawn shop software cost for an Indiana pawn shop?

Pawn shop software typically runs on a monthly subscription or a one-time license. PawnSmarts is $89/month for the Essential plan or $129/month for Professional, or a one-time purchase of $2,995 — and it's free if you run your card processing through us. Every plan is month-to-month with no contract and no setup fee, includes LEADS Online, OFAC and 48 states (Indiana included) pre-configured, runs in any browser on any device, and works offline and syncs when you reconnect. Switching from another system costs a one-time $395 and you're live in under 24 hours.

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