- Traditional two-week payday loans are not offered in Ohio.
- Short-term loans must be repaid in installments under the Ohio Short-Term Loan Act (HB 123, 2019).
- Credit union PALs and bank small-dollar loans are usually still cheaper.
Short-term loan rules in Ohio
| Rule | Ohio |
|---|---|
| Maximum loan | $1,000 |
| Loan term | At least 91 days (shorter only if payments are small relative to income), up to one year |
| Interest | Capped at 28% a year, plus limited monthly fees |
| Total cost cap | Fees and interest limited to 60% of the amount borrowed |
Rules checked 2026-10-04. Confirm current limits with the Ohio Division of Financial Institutions.
What this means for borrowers
You can still borrow a few hundred dollars quickly in Ohio, but the loan will be spread over several payments instead of being due in full on your next payday. That usually makes each payment smaller and the APR far lower than a traditional payday loan.
How to check a lender
Use NMLS Consumer Access and the Ohio Division of Financial Institutions to confirm a lender’s license. Be wary of online lenders that claim Ohio law does not apply to them.
Cheaper options in Ohio
- Credit union payday alternative loans (PALs): $200–$2,000 at no more than 28% APR. Search for a federal credit union in Ohio that offers them. See how PALs work.
- Your bank’s small-dollar loan, if it offers one. See bank small-dollar loans.
- Cash advance apps for $20–$500 based on your direct deposits. See apps compared.
- 211: call or text 211 for local help with rent, utilities and food.
Tried the free options first?If you still need a small short-term loan, you can send one request to our lender network. Compare the cost carefully.
See loan optionsFrequently asked questions
Are payday loans legal in Ohio?
Not in the traditional single-payment form. Ohio requires short-term loans to be repaid in installments with limits on cost, under the Ohio Short-Term Loan Act (HB 123, 2019).
Where can I complain about a lender in Ohio?
Contact the Ohio Division of Financial Institutions and file a complaint with the CFPB.