Ohio lies in the Great Lakes region of the United States. Columbus is the capital of the state. It ranks thirty-fourth by area and tenth by the density of population. Economically Ohio ranks as the seventh largest states in the country based on the GDP census a few years back. The state’s main employment sectors are trade, transportation, and utilities followed by healthcare and education sectors. Many of the public traded companies of the country have their headquarters in this state.
Due to a strong economy and good employment sectors Ohio is considered as one of the most affordable state’s to live in with affordable housing and good and average rankings in other areas like quality of life, education, etc. They also have their own lottery which definitely is an attraction for many.
Although the state offers a decent living in general, financial emergencies can arise at any time and with anyone. Payday loans are a blessing in disguise in such situations. Before getting into the details of payday loans in Ohio specifically lets quickly understand what they are for those who are not aware of them.
Payday loans as the name suggests are quick loans that you take out from any financial institution with the agreement of paying back as soon as your salary is credited to your account. Considering the short duration of payback, they come with a higher rate of interest and other finance charges. These loans are legal in most of the states of the country, however, there are some states that do not allow them.
Luckily for the people of Ohio, they are legal in the state. A few years back these loans though regulated did not have very good rules around them, which caused problems for people. However, recent changes in the regulations have made them more approachable for people. The Ohio Division of financial institutions regulates these loans under the citations “Ohio Rev. Code Ann. 1321.35 et seq. Short-Term Loan Act (No payday lenders are licensed under this law.)”.
Rate of Interest and other charges– 28% annual interest. This means that the APR on a 100$ loan for 14 days is also 28%. Finance and bank charges may also be taken from the borrower. Bank charges must be disclosed beforehand. Apart from that collection charges and court charges if any are also applicable. Criminal action in case of inability to pay is prohibited.
The Number of loans – At any time the borrower can take out one loan, and over the year four loans in total.
The Number of rollovers – Rollovers are not permitted. A cool off period is also mandated as a maximum of two loans in 90 days.
Repayment plan – The bank must have an agreed repayment plan with the borrower. A repayment plan of 60 days will have no fees attached.
The one thing all borrowers need to be very cautious about is the unlicensed lenders in the market. You must always borrow from someone who holds the license with the state because if you don’t then the state regulations may not protect you.
When you take a loan from any lender the lender must create an agreement with you and this agreement must contain all the details about the loan amount, tenure, charges, and repayment plan and other options in case of failure to payback. As a borrower, it is your responsibility to ensure you read through this document before you sign it and then enjoy the benefits of the loan.