CLEARBORROW · PUBLISHED NOVEMBER 12, 2026
Payday loans in Ohio: the Short-Term Loan Law
Since Ohio’s 2018 reform (House Bill 123), short-term loans are limited to $1,000 and must last 91 days to one year — shorter only if the monthly payment stays under 6% of gross or 7% of net monthly income. Lenders may charge 28% annual interest plus a monthly maintenance fee of no more than 10% of the loan or $30, and total fees and charges cannot exceed 60% of the original loan amount.
On this page
The rules
| Rule | Ohio limit |
|---|---|
| Maximum amount | $1,000 |
| Term | 91 days to 1 year (shorter only under the income test) |
| Interest | Up to 28% a year |
| Monthly maintenance fee | Lesser of 10% of the loan or $30 |
| Other charges | A loan origination charge and limited check fees |
| Total fees and charges | No more than 60% of the originally contracted loan |
Sources: Ohio LSC final analysis ↗, R.C. 1321.39 ↗, R.C. 1321.40 ↗.
The 60% ceiling in dollars
| Loan | Most you can be charged in total | Most you repay |
|---|---|---|
| $300 | $180 | $480 |
| $500 | $300 | $800 |
| $1,000 | $600 | $1,600 |
Our arithmetic from the 60% cap. Your actual charges depend on the term and fees; ask for the total of payments.
The income test for short loans
A loan shorter than 91 days is allowed only if the total monthly payment does not exceed 6% of your verified gross monthly income or 7% of your verified net monthly income, whichever is greater (R.C. 1321.39 ↗). On $3,000 gross a month, that is a payment of no more than $180.
Check the license
Lenders making these loans must be licensed under Ohio’s Short-Term Loan Law; the Department of Commerce’s Division of Financial Institutions publishes information on business under the law (Ohio LSC ↗).
Cheaper options to compare
- A payday alternative loan from a federal credit union (APR capped at 28%).
- A cash advance app — compare costs with our fee calculator.
- Asking the company you owe for more time or a payment plan.
- If you already owe a payday loan: extended payment plans and getting out of payday debt.
Questions
Are traditional two-week payday loans still available in Ohio?
Not in the old form. Licensed short-term loans must generally run at least 91 days unless the income test is met.
What is the most a $1,000 loan can cost in Ohio?
Total fees and charges are capped at 60% of the loan amount — $600 on $1,000.
Can an Ohio lender refinance my loan?
The law permits refinancing only if the lender does not collect a monthly maintenance fee on the refinanced loan.
Sources and limits
- Ohio Legislative Service Commission: HB 123 final analysis ↗
- Ohio Revised Code §1321.39: short-term loan requirements ↗
- Ohio Revised Code §1321.40: maximum interest rate and permitted fees ↗
Sources checked November 12, 2026. Laws change; confirm with your state regulator before borrowing. This is general information, not legal advice. Worked examples are our own arithmetic. How we use sources.