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Payday loans by state

Payday Loans in Covington, IN: Rules, Costs and Local Options

With about 2,751 residents (2024 Census estimate), Covington has grown since 2020. If you are thinking about a payday loan here, these are the Indiana rules that apply, what it costs and the local alternatives.

Key takeaways
  • Payday loans in Covington follow Indiana law (Indiana Small Loan law (IC 24-4.5-7)).
  • Borrowing $300 at the state maximum costs $44.
  • The nearest larger city is West Lafayette, about 32 miles away.

Covington at a glance

Covington
Population (2024 Census estimate)2,751
Change since 2020+2.5% (growing)
CountyFountain County
Size rank among 482 Indiana places we cover165th
Nearest larger cityWest Lafayette (about 32 miles)
Credit unions headquartered in town (NCUA)None
Credit unions headquartered in Fountain County1
Other towns within 25 miles15 (about 14,199 residents)
Typical payday APR statewide (CRL 2023)372%

There is no separate Covington payday law: Indiana rules apply here, and any lender serving Covington residents, online or in person, needs a license from the Indiana Department of Financial Institutions.

Credit unions near Covington

No credit union has its main office in Covington, but these are based elsewhere in Fountain County (NCUA, June 2026):

  • Battery Employees Federal Credit Union in Attica (federal charter — may offer payday alternative loans (PALs))

Only federal credit unions can offer payday alternative loans (PALs), capped at 28% APR; state-chartered credit unions often have their own small-loan products. Membership rules apply, and only main offices are listed here; find branches near you with the NCUA Credit Union Locator. See how PALs work.

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Payday loan rules that apply in Covington

In short, Indiana rules that cover Covington include: maximum loan: $605, and no more than 20% of your gross monthly income; maximum fee: 15% of the first $250, 13% of $251–$400, 10% of $401–$605; minimum term: 14 days. See the full Indiana payday loan rules.

What a $300 loan costs in Covington

At Indiana’s maximum fee, borrowing $300 costs $44. Statewide, the typical APR on a $400 payday loan was 372% (Center for Responsible Lending, June 2023). Check any offer with our payday loan calculator.

Other help in Fountain County before you borrow

Before a payday loan, Covington residents can usually find something cheaper:

  1. Local assistance through 211 covering Fountain County.
  2. A credit union payday alternative loan (max 28% APR). See PALs explained.
  3. Your bank’s small-dollar loan, if offered (compare banks).
  4. A cash advance app for $20–$500 (apps compared).

Towns near Covington

The nearest larger city is West Lafayette, about 32 miles away. See all 482 Indiana cities.

Need cash before payday?Send one free request to our lender network. We are not a lender; offers and rates come from lenders.

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Frequently asked questions

Are payday loans legal in Covington?

Yes. Payday loans are legal in Covington under Indiana state law, and lenders must be licensed by the Indiana Department of Financial Institutions.

How much does a payday loan cost in Covington?

At Indiana’s maximum fee, borrowing $300 costs $44. The typical statewide APR was 372% in 2023.

Where is the nearest credit union to Covington?

No credit union is headquartered in Covington, but Battery Employees Federal Credit Union is based in Attica, also in Fountain County.

Sources

  1. U.S. Census Bureau — City and town population totals, Vintage 2024
  2. U.S. Census Bureau — 2024 Gazetteer files (place locations)
  3. NCUA — Credit union call report data, June 2026 (FOICU)
  4. Indiana DFI — Small loan law borrower rights
  5. Center for Responsible Lending — Red Alert Rates: APRs on $400 single-payment payday loans (June 2023)
  6. CDFI Fund — NCUA payday alternative loans summary
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