Loans in Ohio: payday, personal & title loan laws (2026)

Payday-style loans are legal in Ohio only as 'short-term loans' from lenders licensed under the Short-Term Loan Act (as rewritten by House Bill 123, effective 2019). These are installment loans of up to $1,000 with a 28% interest cap and a total-cost cap of 60% of the amount borrowed.

A short-term loan may not exceed $1,000.

Interest is capped at 28% a year. The lender may also charge a monthly maintenance fee of up to 10% of the loan amount or $30, whichever is less (not allowed for active-duty military and their dependents), and a 2% origination charge on loans of $500 or more. Total fees and charges may not exceed 60% of the amount originally borrowed.

Short-term (payday) lenders may not take a car title as security, and credit services organizations may not arrange loans under $5,000, of one year or less, or above 28% APR. A vehicle-secured loan can still be made under other Ohio lending licenses, but only at those laws' lower rate caps.

No title-loan-specific rate. A vehicle-secured loan made under another license is subject to that law's cap, for example 25% a year under the Consumer Installment Loan Act or 21% a year under the General Loan Law.

Licensed lenders capped at 21%-28% a year depending on license; Consumer Installment Loan Act 25%.

Yes. A license is required to lend $5,000 or less at rates above what an unlicensed lender may charge. Anyone who arranges such loans for a fee is also covered.