Payday Loan Laws in Ohio
Payday loans make it easy to get an immediate short-term loan when faced with the unexpected expenses that can occur in between paydays. This financial option is particularly favorable to borrowers in Ohio, as limits on the annual interest rate and the prohibition of expensive rollovers ensure that small loan balances do not incur a high level of fees. In fact, payday loan laws in Ohio even enable loans to be repaid through automatic electronic transfers, which can eliminate the need to mark the calendar in order to remember the scheduled due date.
It is important to note that payday loans are not available in every state and laws and regulations vary by state. Information for Ohio Payday Loans is provided for your convenience.
Payday loans are ideal for obtaining fast cash without the need to complete a mountain of required forms or wait for a credit check to be conducted. Active employment and an open bank account are generally all that is necessary, which makes them available to nearly everyone, even if a personal credit rating is less than perfect. For residents of Ohio, the process is even easier, as established laws concerning the loan terms ensures that excessive fees are eliminated, and repayment is made simple.
Payday loan laws in Ohio limit the amount that can be borrowed to a maximum of $500, and they allow only one outstanding loan to be held by a borrower at any single time. In addition to this, an individual borrower may obtain a payday loan only 4 times per year, with a 90-day waiting period required after a second loan within a 12-month period has been repaid. While these terms may seem restrictive, Ohio does offer borrowers some favorable terms in regards to fees, particularly
concerning the interest rate that lenders are allowed to apply.
In the state of Ohio, the annual interest rate is limited to a maximum of 28%, which is far less than the triple-digit interest rates that are typically applied to payday loans. Rollovers are also strictly prohibited in this state, which means that it is illegal for lenders to automatically renew loans in order to gain a higher profit through the accumulation of interest. Lenders are instead required to offer an installment plan that will allow borrowers up to 60 additional days to repay their loan, and without incurring any additional fees. However, a collection charge of $20 may be added once the initial due date has passed.
Payday loans in Ohio have the additional perk of allowing loan balances to be repaid through electronic withdrawals. This means that repayments can be made automatically on a scheduled date, thus saving borrowers the need to make an additional trip to the lending facility. Finance charges are also especially low, with the maximum allowed finance charge being only $1.08 for every $100 borrowed, with the charges applied in 14-day increments. This makes payday loans in Ohio one of the most affordable payday loan options in any state of the US.
Strict limits on the applied interest rate and the prohibition of rollover keeps payday loans affordable, with extended repayment plans available without the accumulation of additional fees. Payday loan laws in Ohio may be strict concerning the number and amount of loans a borrower may hold, but the low cost of financing and the repayment options make payday loans the perfect solution for fast cash in the Buckeye State.
Take a look at the benefits of applying for Online Payday Loans if available in your state.