Ohio payday loan laws is the answer to “are payday loans legal in Ohio”. This guide gives the Ohio figures in a dated table, explains in plain words what they mean, walks through the steps, and points to the official forms and free help.
The Ohio payday loan laws figures on this page were verified against a dated 50-state compilation and Ohio sources as of October 2026; the statute named here is where to check them yourself.
Ohio payday loan laws at a Glance
| Status | Restricted |
| Fee or APR cap | 28% interest plus a monthly fee (lesser of 10% or $30); total charges capped at 60% of the loan |
| Maximum loan | $1,000 |
| Maximum term | 91 days to 1 year (shorter only if payments are small relative to income) |
| Statute | Ohio Rev. Code 1321.35 et seq. |
In This Ohio payday loan laws Guide:
What Ohio Payday Loan Laws Cover
A payday loan is a small, short-term cash loan, often repaid from the borrower’s next paycheck or through scheduled withdrawals from a bank account. Ohio does not ban these loans. It allows them only from lenders licensed under its Short-Term Loan Act, which was rewritten by House Bill 123.
That law applies to loans made on or after April 27, 2019, and it caps the interest, fees and total cost a lender may charge.
The Ohio payday loan laws Figures
| Rule | Bonus Bank Daily verified figure |
|---|---|
| Status | Restrictedcompilation / agency — verified Oct 2026 |
| Fee or APR cap | 28% interest plus a monthly fee (lesser of 10% or $30); total charges capped at 60% of the loancompilation / agency — verified Oct 2026 |
| Maximum loan | $1,000compilation / agency — verified Oct 2026 |
| Maximum term | 91 days to 1 year (shorter only if payments are small relative to income)compilation / agency — verified Oct 2026 |
| Statute | Ohio Rev. Code 1321.35 et seq.compilation / agency — verified Oct 2026 |
The Ohio payday loan laws figures on this page were verified against a dated 50-state compilation and Ohio sources as of October 2026; the statute named here is where to check them yourself.
What a Loan Costs Under Ohio Payday Loan Laws
Take a $500 loan repaid in one lump sum after 91 days. At the highest rates the law allows, interest comes to about $34.90 and three monthly fees of $30 come to $90, for a total of about $124.90. You would repay about $624.90, and the cost works out to an APR of roughly 100%.
If you repay in installments, the APR can be higher, so check the APR printed on the contract.
Online Lenders and Ohio Payday Loan Laws
Lenders who make loans to residents generally must follow the state’s rules and hold its license. Check the regulator’s license lookup before giving any lender access to your bank account.
Your Rights Under Ohio Payday Loan Laws
Borrowers often have rights to a repayment plan, limits on bounced-check fees, and the federal right to stop a lender’s automatic withdrawals by notifying the bank.
Alternatives to Loans Under Ohio Payday Loan Laws
Credit unions offer small-dollar loans at capped rates, many employers offer pay advances, and utilities and medical providers often agree to payment plans that cost less than a payday loan.
Reporting a Lender That Breaks Ohio Payday Loan Laws
The Office of Consumer Affairs at the Ohio Division of Financial Institutions takes written complaints, with supporting documents, about lenders it regulates. Filing a complaint does not guarantee the issue will be resolved. You may also file with the CFPB at consumerfinance.gov/complaint. In most cases it helps to keep the loan contract, payment receipts, bank statements showing withdrawals, and any letters, texts or emails from the lender or collector.
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Common Mistakes With Ohio payday loan laws
The most common mistake is missing a deadline: court and creditor deadlines run whether or not you have read the papers, and a missed one usually cannot be undone. The second is relying on an old article or a friend’s experience in another state — the rules on this page differ from state to state and change often, which is why every figure here is dated.
The third is not keeping copies: every letter, form, receipt and bank statement may matter later, so keep them together and note the date you received each one.
Free Help With Ohio payday loan laws in Ohio
You do not have to handle this alone or pay to get answers. The Ohio court self-help center explains the forms and the steps, and court clerks can tell you where and how to file, although they cannot give legal advice.
Legal aid organizations represent many people at no cost when income is limited, and the Ohio bar’s lawyer referral service can connect you with a lawyer for a low-cost first consultation. The Consumer Financial Protection Bureau accepts complaints about lenders, banks and debt collectors nationwide.
How We Verify the Ohio payday loan laws Figures
Every figure in the table above comes from our 50-state data file, built by reading the Ohio statute or an official compilation of it, and each one carries the month we last checked it. Our writers do not change those figures; they explain them. When the law changes, the figure is updated and the date moves.
If something on this page no longer matches the statute, the statute controls — and we want to hear about it.
Ohio’s 2018 reform (House Bill 123) also limited “credit services organizations” from brokering loans for borrowers. Lenders had used that arrangement to get around the old payday caps, so payday-style loans now generally have to be made directly under the Short-Term Loan Act. The same law repealed the old statewide database that tracked short-term loans. Confirm current details with the statute or an attorney.
Next rung: the Ohio maximum interest rate page shows the general cap behind these limits.
Ohio — the bottom line
- Ohio payday loan laws decide whether a payday loan can be offered at all, and at what cost — the status and cap are in the table above.
- Under Ohio payday loan laws, licensed lenders must follow the fee, size and rollover limits; an unlicensed lender is a red flag.
- If a lender breaks the Ohio payday loan laws, report it to the regulator named in the table.
Ohio Payday Loan Laws FAQ
Are payday loans legal in Ohio?
Only in a restricted form, under the limits in the table above.
Official Ohio Sources & Resources
- Statute and the National Conference of State Legislatures payday lending statute summary — payday and small loans: https://www.ncsl.org/financial-services/payday-lending-state-statutes
- Ohio statute / opinion: https://codes.ohio.gov/ohio-revised-code/section-1321.40
- Ohio Department of Commerce, Division of Financial Institutions – Office of Consumer Affairs (Consumer Complaint Form): https://dam.assets.ohio.gov/image/upload/com.ohio.gov/FIIN/assets/ConsumerComplaintForm.pdf
- Consumer Financial Protection Bureau: consumerfinance.gov
This Ohio payday loan laws guide was last verified against official Ohio sources in October 2026. Rules change — confirm the current rule with the statute or a licensed attorney.
More Ohio Money Rights Guides
Disclaimer: This guide is general information, not legal or financial advice. Bonus Bank Daily is an independent educational resource — not a law firm, not a bank, not a debt collector and not a government agency. Judgment, levy, interest-rate and debt rules change — every figure here carries the date we verified it.
Confirm the current rule with the statute, the court clerk or a licensed attorney in your state before you act.