Summary of Current Interest Rate Policy

Indiana's Drinking Water and Wastewater State Revolving Fund Programs use a Base SRF Program Interest Rate, which is reset on the first business day of each January, April, July, and October.

The Base Rate is calculated by using 90 percent of the average 20-year AAA-rated, general obligation bond Municipal Market Data (“MMD”) composite index for the most recent calendar month. The Base Rate is then discounted further based upon a borrower’s Median Household Income (MHI) from the most recent Census data and projected user rates. This Census data is posted at https://data.census.gov/cedsci.

Below are the current SRF Program interest rates effective October 1, 2025 through December 31, 2025. The interest rates vary based on three ranges of average monthly user rates for an equivalent dwelling unit (User Rates) within each of the three existing MHI tiers, creating nine possible interest rates.

* MHI reflected in 2023 ACS 5 year estimates (2019-2023)
Note: Up to an additional .50% reduction may be permitted if a non-point-source project is financed along with a point source project or a project that includes green/sustainable components, including climate resiliency components.

* MHI reflected in 2023 ACS 5 year estimates (2019-2023)
Note: Up to an additional .50% reduction may be permitted if a project is financed that includes green/sustainable components, including climate resiliency components.  The SRF interest rate may also be reduced if a project includes lead line replacement. 

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Please contact Bill Harkins at (317) 234-4862 or wharkins@ifa.in.gov with questions.