Loan Options in Ohio

Ohio passed the Short-Term Loan Act in 2018 and eliminated traditional single-payment payday loans. Now lenders must offer scheduled installment plans instead of one lump-sum payment. Any lender operating in Ohio needs a Short-Term Loan license from the Division of Financial Institutions.

Installment loans are available under this framework and through other Ohio lending licenses. What a lender calls a "payday loan" or "cash advance" in Ohio probably works differently than the same product in another state. For specific cost caps and APR limits, see the Rates & Fees page. For how each product type actually works, visit Payday Loans and Installment Loans.

If you'd rather avoid a high-cost loan, check out alternatives available in Ohio.

The 2018 Short-Term Loan Act gave Ohio some of the stronger consumer protections for small-dollar loans in the country.

• Mandatory installment repayment - No lender can demand a single lump-sum payment. Your loan must last at least 91 days and be repaid in roughly equal installments, which lowers the risk you'll get trapped by rollovers.
• Total cost cap - Ohio limits how much a lender can charge in fees and interest on a short-term loan, including monthly maintenance fees and the interest rate. See Rates & Fees for the exact numbers.
• One loan at a time - You can't have more than one short-term loan open at once. Lenders have to check a state database before approving you, so they'll see if you already have a loan.
• Right to file a complaint - If a lender breaks Ohio lending law, you can file a complaint directly with the Ohio Department of Commerce.

Before you share personal information with any lender, review our scams and safety checklist. Verify the lender holds a license through the Ohio Division of Financial Institutions licensee search.