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Payday loans in Ohio

Payday loans for bad credit in Ohio

Payday loans are allowed in Ohio from state-licensed lenders (Short-Term Loan Law license). Here are the limits Ohio law sets, what a typical loan can cost, and where to get free help if you need it.

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Last updated .

Part of the Ohio guide

What Ohio law allows

Payday loans in Ohio
ProductStatusAPR capAmountTermLicenseLaw
Payday loans[1][2][3][4][5] AllowedHigh-cost loan 28% APR Up to $1,000 91 days to 1 year Short-Term Loan Law license Ohio Rev. Code 1321.35 to 1321.48; 1321.39; 1321.40; 1321.41
Verified against the statute and regulator on September 23, 2026. Laws change; confirm with the regulator before you borrow.

Bars place each APR cap on a 0 to 400% scale; the pin marks the cap. A striped bar means the statute sets no numeric cap.

The rules in full

Payday loans

Rate cap
Under the Ohio Fairness in Lending Act (House Bill 123, 2018, effective April 2019), which created the Short-Term Loan Law, short-term/payday-type loans are capped at 28% annual interest, with a maximum loan amount of $1,000 and a maximum term extended up to one year (i.e., allowing longer installment-style repayment rather than a single balloon payment).
Fees
Monthly maintenance fee not exceeding the lesser of 10% of the originally contracted loan amount or $30 (not charged to active-duty servicemembers or dependents); loan origination charge of 2% of the originally contracted amount for loans of $500 or more (Ohio Rev. Code 1321.40). Terms under 91 days are allowed only if the monthly payment does not exceed the greater of 6% of verified gross monthly income or 7% of verified net monthly income (1321.39). Total outstanding short-term principal across licensees capped at $2,500 (1321.41).
License
Short-Term Loan Law license, issued by the Ohio Department of Commerce, Division of Financial Institutions.

Full detail for every loan type: Ohio lending laws.

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Rent and jobs in Ohio

Typical rent and the jobless rate, to weigh before a loan payment.

Rent and unemployment in Ohio
MeasureValueYear
Fair market rent, 2 bedroom (monthly)[6]$1,238FY2026
Unemployment rate[7]3.3%2026-08

Other options in Ohio

Cheaper options to try first

Worth checking whatever your credit: these can cost less than a high-rate loan.

  • Credit union payday alternative loans (PALs), capped at 28% APR under NCUA rules (12 CFR 701.21).
  • Nonprofit credit counseling through the National Foundation for Credit Counseling.
  • A payment plan from the company you owe, if you ask before you miss a payment.
  • 211 for help with rent, utilities and food: call 211 or visit 211.org.

More cheaper options in Ohio.

Other loan types allowed in Ohio

See every loan type Ohio law allows.

Payday loans in nearby states

Sources

  1. ohiohouse.gov/news/republican/ohio-house-approves-payday-lending-reform-legislation-97372. Retrieved September 23, 2026.
  2. lsc.ohio.gov/assets/organizations/legislative-service-commission/files/payday-lending-in-ohio.pdf. Retrieved September 23, 2026.
  3. wosu.org/news/2019-10-21/changes-in-ohio-short-term-lending-law-create-new-loan-landscape. Retrieved September 23, 2026.
  4. Justia. Ohio Rev. Code 1321.35 to 1321.48. Retrieved September 23, 2026.
  5. com.ohio.gov. Ohio Department of Commerce, Division of Financial Institutions. Retrieved September 23, 2026.
  6. National Low Income Housing Coalition. Out of Reach 2026: Ohio. Retrieved September 23, 2026.
  7. U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.

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Important disclosures

APRs vary by lender and state in Ohio. Each lender sets its own rates and terms and must show you the APR before you sign.

Representative example

Amount borrowed
$1,000
Annual percentage rate (APR)
28%
Repayment
12 monthly payments
Payment
$96.51
Finance charge
$158.12
Total of payments
$1,158.12

Example: a $1,000 payday loan at 28% APR repaid in 12 monthly payments of $96.51 costs $1,158.12 in total, including a finance charge of $158.12. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

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  • Questions about a lender licensed in Ohio? Contact the Ohio Department of Commerce, Division of Financial Institutions or file a state complaint.
  • You can submit a complaint about any lender to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.