Ohio Payday Loan Laws, Explained

Last updated: July 17, 2026

By the US Lending Editorial Team · Reviewed for factual accuracy against the federal and state sources cited on this page.

Key takeaway

Key takeaway: Ohio doesn't have traditional two-week payday loans anymore — a 2018 law reshaped short-term lending into a capped-rate installment product instead. Here's what that actually means if you're borrowing in Ohio.

Who this is forThis guide is for Ohio residents comparing a payday, cash-advance, or short-term loan, and anyone checking what is legally allowed before they borrow.

When to use itUse it before you accept any offer, so you can compare the total cost across more than one lender.

What this page covers

The Ohio Fairness in Lending Act
Rate and Fee Caps
What This Means in Practice

The Ohio Fairness in Lending Act

Effective in 2019, this law restructured short-term consumer lending in Ohio. Instead of a single lump-sum repayment on your next payday, short-term loans must now be structured as installment loans with a minimum term — generally 91 days, unless the monthly payment is a small enough share of your income to qualify for a shorter term.

Rate and Fee Caps

Ohio caps the interest rate on these loans at 28% APR, with an additional monthly maintenance fee also capped by statute. Combined, the total cost of the loan is capped so it can't exceed a set percentage of the original loan amount — a significant departure from the uncapped fees allowed in many other states.

What This Means in Practice

Because the law requires an installment structure rather than a single balloon payment, Ohio borrowers typically see a lower total cost and a more predictable repayment schedule than the traditional payday model — but the tradeoff is a longer minimum commitment than a typical two-week loan elsewhere.

Factor	Ohio Rule
Loan structure	Installment, not single lump-sum repayment
Minimum term	~91 days, with exceptions for smaller payment-to-income ratios
APR cap	28%
Total cost cap	Capped as a percentage of the loan amount, in addition to the APR cap

Terms can change — verify current requirements with the Ohio Division of Financial Institutions before assuming any figure above still applies.

Sources: NCSL — Payday Lending State Statutes · CFPB — Payday Loans

Ohio Payday Loan FAQ

Are payday loans legal in Ohio?

Traditional two-week payday loans are gone. A 2018 law reshaped short-term lending into a capped installment product.

What is the payday loan rate cap in Ohio?

28% APR, with a total-cost cap on top, and a minimum term of about 91 days.

How do short-term loans work in Ohio now?

As installment loans repaid over time, not a single lump sum.

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