Ohio Promissory Note

A secured or unsecured loan note with installment or lump-sum repayment, interest within your state's legal limit, late fees and default terms.

Free to fill & preview · $19 for the clean PDF + Word

This preview updates as you type. Blank fields show as ____ .

Ohio rules that this document follows

Maximum interest (private loans)8% per year — 8% per year max by written contract; exemptions: loans over $100,000, business loans, loans secured by a mortgage or by securities, and loans by licensed lenders (§ 1343.01(B))Source: Ohio Rev. Code § 1343.01
Criminal usury threshold25%Source: Ohio Rev. Code § 2905.21–.22 (criminal usury: over 25% per year, 2nd-degree misdemeanor)
Legal rate when none is statedSee statuteSource: Ohio Rev. Code § 1343.03; § 5703.47 (federal short-term rate + 3%, set annually by the Tax Commissioner)
Late feesNo statutory cap on late fees for private (non-consumer-lender) loans; fee must be a reasonable liquidated-damages estimate and, together with interest, must not push the effective rate above the usury ceiling
Time to sue on a written note6 yearsSource: Ohio Rev. Code § 2305.06 (written contracts, 6 years); § 1303.16 (notes, 6 years)
Notarization / witnessesNot required (optional for evidentiary value)

Rules current as of 2026-09-07. Statutes change; verify before relying on them.

How to use this Promissory Note in Ohio

Keep the interest rate at or below the Ohio ceiling shown above; a usurious note can cost the lender all interest and more. For loans between family members, the IRS applicable federal rate (AFR) is the minimum to avoid imputed-gift issues on loans above $10,000.

Sign one original; the lender keeps it and the borrower keeps a copy. When the note is paid, the lender should mark it 'PAID IN FULL' and return it.

Frequently asked questions

What is the maximum interest rate I can charge in Ohio?

8% per year for a private written loan (Ohio Rev. Code § 1343.01). 8% per year max by written contract; exemptions: loans over $100,000, business loans, loans secured by a mortgage or by securities, and loans by licensed lenders (§ 1343.01(B)) Above 25% is criminal usury.

Does a promissory note need a notary or witnesses?

No. A note signed by the borrower is enforceable in Ohio. Notarizing is optional; for a secured loan, file a UCC-1 or note the lien on the vehicle title to protect the lender.

How long can the lender sue on an unpaid note?

6 years from default (Ohio Rev. Code § 2305.06 (written contracts, 6 years); § 1303.16 (notes, 6 years)).

Related documents

Other states

FormsByState provides self-help document templates and general information, not legal advice. We are not a law firm. For advice about your situation consult a licensed attorney in your state.