Payday loans in Ohio

Are payday loans legal in Ohio?

Short-term loans are legal in Ohio, but state law requires longer repayment periods and limits what lenders can charge, so they work more like installment loans than two-week payday loans.

The governing law is Ohio Rev. Code Ann. 1321.35 et seq… Ohio Division of Financial Institutions licenses lenders and takes complaints.

Loan limits in Ohio

• Loan size: up to $1,000
• Loan term: 91 days to 1 year
• Loans at one time: Maximum of $2500 Outstanding.
• Repayment plan: equal payments across all months.

What a payday loan costs in Ohio

State law sets the price rule: 28% + lesser of 10% of originally contracted loan amount or $30 maintenance fee.

Because the price is not a simple per-$100 fee, ask the lender for the total finance charge and the APR in writing before you agree. Federal law requires both numbers on your loan agreement.

Before you deal with an online lender

1. Look the company up with Ohio Division of Financial Institutions. No license, no loan.
2. Never pay a fee up front to get a loan. That is the mark of an advance-fee scam.
3. Read the agreement for the finance charge, the APR and the due date before you give out bank details.

If you cannot repay a loan in Ohio

Contact the lender before the due date and ask for a payment plan in writing. The state rule: equal payments across all months. If a lender or collector breaks the rules, file a complaint with Ohio Division of Financial Institutions and with the CFPB. Our guide to what happens if you don’t pay covers each step.

Lower-cost options in Ohio

• Credit union payday alternative loans (PALs): $200 to $2,000 at no more than 28% APR.
• A payment plan with the landlord, utility or hospital you owe often costs nothing.
• Local assistance: dial 211 for rent, utility and food programs near you.

See all payday loan alternatives or work out a loan’s price with the cost calculator.