A payday loan may be simple to get, but make sure you know the laws first.
If you’ve fallen on hard financial times, you might be looking into a payday loan. As an Ohio resident, you should be sure to confirm that you’re being charged the right interest rate and that the terms are something you can afford.
Our top pick: CashUSA
Need a quick cash loan as high as $10,000? This loan connection service could help.
- Min. Loan Amount: $500
- Max. Loan Amount: $10,000
- Loan Term: 90 days to 72 months
- Turnaround Time: As early as 1 business day
- Requirements: Must have a monthly income of $1,000+ after taxes and valid checking account.
How does payday lending in Ohio work?
Payday lending is legal in Ohio under the Ohio Revised Code Ann. 1321.35 et seq., however there are no lenders officially licensed under these statutes. Instead, lenders register as small loan lenders (versus short-term lenders) in order to avoid the interest rate cap of 28%.
This means that Ohio lenders skirt the law and often charge well over 600% APR.
In order to protect yourself from predatory lending, be sure your lender is following these official regulations:
- Maximum loan amount: $500
- Loan term: 31 or more days
- APR: 28%
- Finance charge: A loan costs $1.08 per $100
- Collection fees: $20 collection charge
If you default on your loan, a lender may also charge you for court costs and possible damages.
New laws on the way
On October 29, 2018, a new set of payday loan regulations will come into effect. A 2008 law prevented payday lenders from charging more than 28% interest, but many skirted this regulation by register under the Ohio Small Loans Act.These changes mean that Ohio payday lenders will no longer be able to charge the nation’s highest interest rates. Loans for less than 90 days will have a payment cap of 6% of your gross monthly income or 7% of your net monthly income. For loans between 90 days to one year, fees can’t exceed 60% of the loan value, and monthly fees will be limited to either 10% of the original loan amount or $30, whichever is less.
There will also be a few other changes, including banning the use of car titles as collateral for small loans and giving borrowers a three-day window to return their loan.
Compare your loan options in Ohio
How do I apply for a payday loan?
All payday lenders will require that you be at least 18 years old, have a regular source of income and be an American citizen or permanent resident of the US.
The application will usually have questions asking for your personal information like your Social Security number, employer, income and often your bank account numbers.
What are the alternatives to payday loans?
If you’re struggling between paying your debts and paying your everyday bills, you may want to look into assistance programs like Medicaid, the Emergency Food Assistance Program (TEFAP) or the Home Energy Assistance Program (HEAP).
Take a look at other payday loan alternatives here
Bottom line
Although payday lending is technically legal, lenders often take advantage of loopholes to avoid abiding by the laws that limit the interest they can charge. This means you need to be careful when taking out a loan and consider a payday loan only when you’ve exhausted your other options.
I have a prepaid DEBIT card and want to know where can i get a loan at.
Hi Angelic,
Thanks for reaching out.
You may visit this page and check on lenders that allow for loans that may be credited to a debit card.
The page will guide you on what you need to know about what prepaid debit cards can help you access your loan funds without a bank account or strong credit.
Hope this helps,
Joanne
How can I get a $500 dollar loan within 1-2 days without a savings or checking account.
Hello Carol,
Thank you for your inquiry.
There are lenders which allow prepaid cards to be used as a settlement of your proceeds or cash pick-up. You may need to inquire about its availability as this varies per lender.
Please be reminded to check the loan requirements and eligibility before applying.
Hope this helps.
Cheers,
Jonathan
Can I get a emergency loan in Ohio even though I live in Indiana
Hello Casey,
Thank you for your inquiry.
Generally, this is not allowed as lenders would need to still verify your state of residence.
However, there may be cases it can be considered, so long as you have temporary residence in that state. This is largely on a case-by-case basis depending on your lender. You can read more information about that in this page.
Hope this helps.
Cheers,
Jonathan
Can you get a payday loan in Michigan and Ohio?
Hi Tony,
Thank you for your enquiry.
Payday loan options are legal in both Michigan and Ohio and, as long as you meet the eligibility criteria and requirements of the lenders, you may apply for a payday loan in those mentioned territories.
Please check out this page for a guide on applying for payday loan in Michigan and the please check out the details above for payday loan guide for Ohio residents.
I hope this helps.
Kind regards,
Jason
Can I get the money if apply at one your store?
Hi Ken,
Thank you for your inquiry.
While we do not represent any company that we feature on our pages, we can offer you a general advice. In general, the process is quick and simple, only taking five to 10 minutes, whether you apply in-store or online.
I hope this information has helped.
Cheers,
Harold