Title Loans in Ohio

Ohio used to be one of the most expensive places in the country to take out a short-term loan, largely because lenders found ways around the state’s limits. In 2018, lawmakers closed those gaps with House Bill 123, the Ohio Fairness in Lending Act. One result: short-term lenders in Ohio can’t take your car title as collateral at all. If you’re searching for title loans in Ohio, this guide from Auto Cash Title Loans explains what the law bans, what kinds of vehicle-secured borrowing may still be possible, and how to protect yourself from lenders that ignore the rules.

Are title loans legal in Ohio?

The traditional short-term title loan is not available from Ohio short-term lenders. Under Ohio’s Short-Term Loan Law (R.C. 1321.35 to 1321.48), a lender may not accept the title or registration of a vehicle as security (R.C. 1321.41(H)). After HB 123, lenders offering loans of $1,000 or less, or with terms of one year or less, can operate only under the Short-Term Loan Law.

The Ohio Legislative Service Commission notes that auto title loans are prohibited under the Short-Term Loan Law “but may be available under different licensing laws.” In practice, that means a vehicle-secured loan would have to be a larger or longer loan made under another Ohio lending law, with that law’s own limits. Because the classic 30-day title loan has no lawful home but vehicle-secured lending isn’t banned outright, we classify Ohio as restricted.

The governing law: HB 123 and the Short-Term Loan Law

According to the Legislative Service Commission’s 2022 brief, the Short-Term Loan Law sets these terms:

• Maximum loan: $1,000 (R.C. 1321.39(A)).
• Term: up to one year. Unless the payment is affordable relative to your verified income, you must have at least 91 days to repay.
• Interest: up to 28% per year.
• Fees: a monthly maintenance fee of up to 10% of the loan or $30, whichever is less, and a 2% origination charge on loans of $500 or more.
• Total cost cap: all fees and charges combined can’t exceed 60% of the original loan amount.
• Collateral: no vehicle title, registration, real property or other collateral as security.
• Cancellation: you may cancel by returning the money by 5:00 p.m. on the third business day after signing.
• Borrowing limit: no more than $2,500 in short-term loans outstanding from all lenders at once.

HB 123 also restricted credit services organizations, the broker model many Ohio title and payday lenders used before 2018. Under R.C. 4712.071, a CSO may not help arrange credit that is under $5,000, has a repayment term of one year or less, or carries an APR above 28%.

What vehicle-secured borrowing is still possible

It helps to separate two questions: whether you can pledge your car at all, and whether you can get a quick, small, title-backed loan. The answer to the first is sometimes yes. The answer to the second, from an Ohio short-term lender, is no.

Larger, longer loans may be made under Ohio’s other lending laws, such as the General Loan Law or the Ohio Consumer Installment Loan Act, which the LSC describes as loans of at least six months generally repaid in equal installments. Each law has its own rate and fee limits. We did not verify a specific rate cap that would apply to a vehicle-secured loan under those laws, so ask the lender which Ohio license it holds and get every cost in writing.

If a company offers you a 30-day “title loan” for a few hundred dollars, or quotes a monthly fee like 25%, that doesn’t fit Ohio’s Short-Term Loan Law. Read our guide on spotting title loan scams.

Title loans in Ohio’s major cities

State law applies in every Ohio city, so the Short-Term Loan Law’s collateral ban is the same in Columbus and Cleveland. We did not verify any city ordinance adding separate title loan rules. Here’s what matters locally:

• Columbus: the state’s largest city and home to the Ohio Department of Commerce’s Division of Financial Institutions, which licenses consumer lenders statewide.
• Cleveland: borrowers here often search for “auto title loans Cleveland Ohio law.” The answer is the state law above. No short-term lender, storefront or online, may take your title on a loan of $1,000 or less, and brokers can’t arrange high-cost loans under $5,000.
• Cincinnati: across the river from Kentucky, which repealed its own title pledge law in 2024. Crossing the bridge won’t find you a traditional Kentucky title loan either. See the Kentucky title loan rules.
• Toledo: near the Michigan line. Compare the Michigan title loan rules before borrowing across the border, since a loan signed there follows Michigan law.
• Akron: the same state rules apply. Online lenders serving Ohio residents must still be licensed in Ohio.
• Dayton: home to Wright-Patterson Air Force Base. The federal Military Lending Act caps the military APR at 36% for active-duty members and dependents. See title loans for military members.

Safer alternatives in Ohio

Ohio’s rules make some lower-cost options easier to find. Our guide to title loan alternatives covers more.

• Credit union Payday Alternative Loans (PALs): federal credit unions may offer PALs from $200 to $2,000 with APRs capped at 28% and an application fee of no more than $20.
• Licensed short-term loans: up to $1,000 with interest capped at 28% and total fees capped at 60% of the loan, and no collateral required.
• Installment loans and credit union auto-secured loans: usually cheaper and longer-term than any title product.
• Payment plans: utilities, medical providers and landlords often offer hardship arrangements.
• Nonprofit credit counseling: help with a budget and creditor negotiations.

How to check a lender’s license and file a complaint

Use the Ohio Division of Financial Institutions’ eLicense lookup to confirm which license a lender holds. If a short-term lender asks for your car title or registration, or a broker charges fees to arrange a loan the CSO law prohibits, report it to the Division. Keep your documents, and review your borrower rights.

Frequently asked questions

Did Ohio ban title loans?

Ohio’s Short-Term Loan Law bars lenders from taking a vehicle title or registration as collateral, and loans of $1,000 or less or with terms of one year or less must be made under that law. Larger, longer vehicle-secured loans may still be possible under other licensing laws.

What are the requirements for a car-secured loan in Ohio?

Requirements depend on the lender and the license it uses. Expect to provide ID, proof of income and a clear title, and ask which Ohio lending law governs the loan.

What is the Ohio Fairness in Lending Act?

It’s the common name for House Bill 123, passed in 2018. It reformed the Short-Term Loan Law, capped fees and restricted credit services organizations.

Can an Ohio short-term lender take my registration instead of my title?

No. R.C. 1321.41(H) bars accepting either a vehicle’s title or its registration as security.

Who regulates lenders in Ohio?

The Ohio Department of Commerce, Division of Financial Institutions, licenses short-term and other consumer lenders.

Sources

• Ohio Legislative Service Commission: Payday Lending in Ohio, Members Brief (October 2022)
• Ohio Secretary of State: Substitute House Bill 123, 132nd General Assembly
• Ohio Revised Code: Chapter 1321
• Ohio Department of Commerce: Division of Financial Institutions

Last reviewed: October 2026.