Yeah, Indiana University Bloomington does provide scholarships based on merit. Here are some of them:

Dean’s Scholarship
Total Worth: $1,000-$11,000
Eligibility: $1,000-$11,000
Minimum Criteria: Based on academic performance
Separate application needed: No
Application deadline: November 1

Provost’s Scholarship
Total Worth: $1,000-$8,000
Eligibility: $1,000-$8,000
Minimum Criteria: Based on academic performance
Separate application needed: No
Application deadline: November 1

Indiana University Bloomington provides aids at an average of 14159 per student meeting 71% of students need. 95% of students with need receive financial aid at an average of 12629 need-based grant. They also provide other scholarships including The School of Informatics, Computing, and Engineering Scholarship Programs and The Media School Scholarship.