# Ohio Payday Loans: 36% APR Limit & Options (2026) | SB Loan > Ohio caps small loans at 28% APR. Real borrowing costs, 36% installment-loan ceiling details, and better paths forward for 11.79M residents. Источник: https://sbloan.net/state/ohio/ --- # Borrowing Rules & Options for Short-Term Credit in Ohio **Conventional lump-sum payday lending is prohibited throughout Ohio — the 36% APR ceiling permits solely multi-payment installment products near 36% APR (a 36%-APR installment plan runs roughly $1.07 per $100 taken).** Below: how the rate cap shapes life for 11.79M Ohioans, legal shields written into state code, and lower-cost paths to explore ahead of submitting any application. SB Loan is paid by the lenders we match you with. We rank options by cost, not commission. AV **Reviewed by [Andre Vargas, AFC®](/authors/andre-vargas/)** · Reviewed by [Rachel Nakamura, CFP®](/authors/rachel-nakamura/) · Last updated 2026-05-24 **On this page** Myth: Ohio Still Has Two-Week Payday Loans Myth: A 28% APR Means I’ll Pay $280 on a $1,000 Loan Myth: Online Lenders Don’t Have to Follow Ohio’s Rules Myth: With Ohio’s Cap, Any Licensed Loan is a Good Deal Myth: Lenders Can Just “Roll Over” My Loan if I Can’t Pay Frequent Inquiries from Ohio Borrowers Looking for a payday loan in Ohio? You may not find one. State law has eliminated the single-payment, high-cost payday loan, replacing it with installment products capped at a 28% APR—a figure that must include all fees. This guide clarifies the new landscape, corrects common misunderstandings, and highlights your most affordable financial options. ### Ohio's Lending Rules at a Glance - **Rate Cap:** 28% Annual Percentage Rate (APR), which by law includes all fees. - **Maximum Loan Amount:** $1,000 principal. - **Maximum Term:** Up to 365 days (1 year). - **Loan Type Permitted:** Installment loans only; traditional two-week payday loans are illegal. - **Rollovers:** Prohibited by law. - **Governing Law:** Short-Term Loan Act (Ohio Rev. Code § 1321.35, originally H.B. 123). ## Myth: Ohio Still Has Two-Week Payday Loans No, traditional payday loans with balloon payments due on your next payday are illegal in Ohio. The state's credit architecture shifted in 2018 following adoption of the Short-Term Loan Act (H.B. 123), which eliminated the previous model. Today, Ohio authorizes only 36% APR installment products with repayments spread over multiple scheduled payments. If a lender offers you a loan that must be repaid in full in two weeks, they are not operating within Ohio law. For legal, licensed options in major cities, you can explore regulated lenders in [Columbus](/city/oh/columbus-oh/), [Cleveland](/city/oh/cleveland-oh/), and [Cincinnati](/city/oh/cincinnati-oh/). ## Myth: A 28% APR Means I’ll Pay $280 on a $1,000 Loan No, APR (Annual Percentage Rate) is the annualized cost of credit, not a one-time fee. The true price of borrowing inside Ohio borders involves both a monthly maintenance fee and interest. The law caps a monthly maintenance fee at 10% of your loan's principal, with a maximum of $30 per month, and adds a 28% Annual Percentage Rate on the principal. For a short-term loan, your total cost is relatively low. Here’s a breakdown for a two-week loan at the maximum lawful cost: | Loan amount | Term | Typical fee | Total cost | APR | $100 | 14 days | $1.07 | $101.07 | 28% | $300 | 14 days | $3.22 | $303.22 | 28% | $500 | 14 days | $5.37 | $505.37 | 28% | $1,000 | 14 days | $10.74 | $1010.74 | 28% As you can see, the cost is primarily from the small monthly fee, not the 28% annual interest, for very short terms. However, the longer you take to repay, the more the interest accrues, so the total finance charge will be higher for a six-month or one-year loan. ## Myth: Online Lenders Don’t Have to Follow Ohio’s Rules Any lender legally offering loans to Ohio residents must comply with Ohio’s 28% APR cap and other regulations. The Ohio Department of Commerce, Division of Financial Institutions enforces these rules. Lenders operating online must be licensed by the state and are subject to the same Short-Term Loan Act that imposes a $1,000 principal cap, a 365-day maximum stretch, a prohibition on rollovers, plus the 28% APR lid. If an online lender offers you terms that exceed these limits, they are not operating legally in Ohio. You can submit a complaint to the [Ohio Department of Commerce, Division of Financial Institutions complaint portal](https://com.ohio.gov/divisions-and-programs/financial-institutions). ## Myth: With Ohio’s Cap, Any Licensed Loan is a Good Deal While Ohio's 28% cap is a substantial improvement over the old payday loan model, it should still be considered a last-resort maximum. Even with Ohio's 36% ceiling, you often have more affordable options. For example, a Payday Alternative Loan (PAL) from a credit union within the Ohio Credit Union League network can offer APRs around 28% but often with more flexible terms or financial counseling. We recommend treating the 36% figure as a maximum to avoid, not a target to aim for. Below is a checklist to run through before considering a high-APR installment loan. 1. **Contact local nonprofits:** Organizations like United Way of Central Ohio operate across the state, offering emergency grants paired with financial coaching services at zero cost. 2. **Call 211:** Dial Ohio’s 211 helpline to be connected to local assistance programs for utilities, rent, or food, which can reduce the cash shortfall. 3. **Ask your employer about Earned Wage Access (EWA):** Some employers offer apps that let you access already-earned wages before payday, often for a low flat fee. 4. **Check with your bank or credit union:** Your current bank might offer a more affordable small-dollar loan program. For existing Ohio checking account customers, programs like Balance Assist and Simple Loan can provide advances from $100 to $1,000. 5. **Explore credit union Payday Alternative Loans (PALs):** These are specifically designed as lower-cost options, with APRs capped by the National Credit Union Administration. Residents in [Toledo](/city/oh/toledo-oh/), [Akron](/city/oh/akron-oh/), and [Dayton](/city/oh/dayton-oh/) can find local credit union branches that may offer these PAL products. ## Myth: Lenders Can Just “Roll Over” My Loan if I Can’t Pay Ohio law explicitly prohibits loan rollovers (or renewals). This is a crucial consumer protection. Under the old payday loan system, borrowers could get trapped in cycles of debt by paying a fee to extend the due date without reducing the principal. Now, lenders must structure all loans as installment plans with a set, amortizing schedule. If you cannot make a payment, the lender cannot legally reset your loan by charging a new fee on the old debt. They must work with you on the existing payment plan or, if you default, follow legal collections procedures. This structure is designed to create a clear path to paying off the debt. ## Frequent Inquiries from Ohio Borrowers What's the absolute most a lender can charge me in Ohio? The absolute maximum any lender can charge in Ohio is 28% APR, and this figure must include all fees. The law (Ohio Rev. Code § 1321.35) also imposes a maximum loan amount of $1,000 and allows a monthly maintenance fee of up to 10% of the principal (max $30). All these costs are factored into the 28% APR calculation. I'm in the military. Does a different rate apply to me? Yes. Distinctly, federal rules apply a 36% Military APR cap to active-duty members. This federal law, the Military Lending Act, supersedes state law for covered service members and their dependents. It includes almost all fees in its 36% APR calculation and offers other strong protections. Are there any completely free ways to get emergency help? Yes. Nonprofit organizations provide assistance at no cost. United Way of Central Ohio operates across the state, offering emergency grants paired with financial coaching services. When you dial Ohio's 211 helpline, you can be connected to these and other local resources from agencies like Policy Matters Ohio. What are my cheapest quick-cash options in Ohio? Your most practical options in Ohio are a Payday Alternative Loan (PAL) from a credit union within the Ohio Credit Union League network (at around 28% APR), an Earned Wage Access (EWA) app if your employer provides one (usually a low flat fee), or seeking hardship assistance from a nonprofit like United Way ($0 cost). A bank small-dollar program for existing customers is another possibility, though its APR is typically around 100–200%. How does Ohio's law compare to other states? The 36% APR cap that Ohio settled on is consistent with limits passed by voters and legislatures in states like Colorado, South Dakota, Nebraska, and Illinois. It represents a modern trend toward treating small-dollar loans as longer-term installment products with APRs closer to credit card territory, moving away from ultra-high-cost, short-term payday lending. #### See OH 36% APR options We'll match you to Ohio-licensed lenders only, and show lower-cost alternatives side by side. [See 36% APR options](/apply/) 🔒 256-bit encrypted · Ohio Department of Commerce, Division of Financial Institutions-aware --- #### Lower-cost first Always compare: [15 alternatives ranked by APR](/payday-loan-alternatives/). --- #### Compare cost See the 50-State Cost Index or read [the main payday-loans guide](/payday-loans/).