Payday Loans in Ohio

Amount and term limits

An Ohio Short-Term Loan Law loan may not exceed $1,000. A separate borrower-level rule also prohibits a new short-term loan if it would put the borrower above $2,500 in total outstanding principal across short-term loans made by licensees.

The normal statutory duration is at least 91 days and no more than one year. A term shorter than 91 days is permitted only when the total monthly payment does not exceed the greater of 6% of verified gross monthly income or 7% of verified net monthly income.

Interest, fees and repayment

These values are statutory ceilings, not typical lender pricing. The monthly maintenance fee is not added to the balance on which interest is charged, and active-duty service members and their dependents are exempt from that maintenance fee.

Interest may not exceed 28% per year. A monthly maintenance fee may not exceed the lesser of 10% of the originally contracted amount or $30. For an original amount of $500 or more, an origination charge of 2% is permitted. Most loan fees and charges are also subject to an overall cap of 60% of the originally contracted amount, with statutory exclusions for specified check-related charges.

The loan must be a precomputed loan payable in substantially equal installments consisting of principal, permitted fees and interest combined. Ohio’s Short-Term Loan Law is therefore not a traditional single-payment payday-loan structure.

Rollovers, refinancing and early payment

Rollover allowed?

Not reduced to a yes/no rule
Ohio does not use a simple unlimited-rollover model. A licensee generally may not make another short-term loan while its own loan, or one from a commonly controlled person, is outstanding; refinancing is separately permitted under §1321.401 subject to specific conditions.

Prepayment penalty allowed?

No
A licensee may not charge a fee for prepaying the loan in full. If the loan is prepaid or refinanced before maturity, §1321.402 requires a prorated refund of interest, monthly maintenance fees and other charges based on the time the loan was outstanding.

Ohio borrower protections

• The borrower may rescind or cancel the loan by returning the originally contracted amount by 5 p.m. on the third business day after entering the contract.
• Electronic payment is optional and the borrower may revoke authorization for electronic payment.
• The lender may not take vehicle title, real property or other physical assets as collateral for a Short-Term Loan Law loan.
• The lender may not recommend that the borrower take a larger dollar amount than the borrower requested.
• A licensee may not make a loan that would push the borrower above $2,500 of total outstanding principal in Short-Term Loan Law loans from licensees.

Ohio loan cost calculator

This calculator is an educational illustration based on the structured rules shown on this page. A statutory ceiling is not a typical market price or an offer from a lender.

How to verify a lender in Ohio

Regulator: Ohio Department of Commerce — Division of Financial Institutions.

Short-Term Loan Act license

Verify a lender license

Official sources

1. Ohio Revised Code §1321.36 — Short-term loan license required · primary
2. Ohio Revised Code §1321.39 — Short-term loan requirements and restrictions · primary
3. Ohio Revised Code §1321.40 — Maximum interest and permitted short-term loan fees · primary
4. Ohio Revised Code §1321.403 — Short-term loan fee cap · primary
5. Ohio Revised Code §1321.41 — Short-term loan licensee prohibitions · primary
6. Ohio Revised Code §1321.402 — Prepayment or refinancing before maturity · primary
7. Ohio Division of Financial Institutions — License Lookup · primary

Last regulatory verification: 2026-09-06. Laws can change; verify current terms and lender status before borrowing. Read our research methodology.