Payday loan companies began establishing in Ohio in the mid-1990s and were located in working class neighborhoods. The current Ohio law allows payday lenders to charge a fee of $15 for every $100 borrowed for a term of 14-days. Law prevents consumers from obtaining more than 3 loans within 6months. Ohio Payday Loans lender must have a license from the superintendent of financial institutions. If the lender is not located in Ohio then he can’t make a short-term loan to a borrower.

This law also caps APR at 28%, requires loans be under $500, requires 31 days to pay off the loans, and limits users to four loans per year. There are now over 1,600 in Ohio. The highest loan which a borrower can borrow is $800 and the loan period may extend to six months.