Loans in Kentucky: Payday and Installment Options

Yes, you can borrow in Kentucky from two kinds of licensed lender: payday lenders, up to $600 in total since July 15, 2026, and consumer loan companies, for installment loans of up to $15,000 at no more than 3% a month on loans of $5,000 or less.

Kentucky Loan Costs at the Legal Maximum, $300 to $5,000

The most a Kentucky-licensed lender can charge, from a two-week payday loan to a three-year installment loan:

Worked out from Kentucky law, not offers from lenders in our network; a lender can charge less. Installment rows finance the 5% processing fee ($50 on $1,000, $150 on $5,000) and the $3 funding fee; the rate applies to them too.

The payday fee is $15 per $100 of the check, and the check includes the fee, so it's $17.65 per $100 you receive. Every amount up to $600 is on the Kentucky payday loan rules page.

Kentucky's Three Consumer Loan Rate Tiers and Their Fees

Consumer loan companies licensed by the Department of Financial Institutions (DFI) lend up to $15,000, at caps set by the original loan amount since June 29, 2023:

• Processing fee: 5% of the loan, $150 at most, once in 90 days; prepay and the part above $75 is refunded like interest.
• Funding fee: $3 unless you take a paper check.
• Late charge: 2 cents per dollar of the payment per full month late, or 5% or $15, whichever is greater, once: $15.00 on a $105.79 payment.
• Returned payment: $25, or the bank's or processor's charge if greater.
• Term: equal payments, within 60 months and 15 days up to $3,000, or 120 months above.

Banks, credit unions and pawnbrokers lend under their own laws, outside these caps. DFI listed 368 licensed consumer loan companies at the end of 2025.

Payday Loans Under KRS 286.9 in Brief

Kentucky calls payday loans deferred deposit transactions. You can have 2 open at once, with no more than $600 in cash between them, and a lender can hold your check 60 days at most, after checking a statewide database.

• No rollovers for a fee, and no cold-check conviction over a payday check that bounces.
• No new payday licenses: KRS 286.9-071 bars DFI from issuing any. DFI counted 1,043,566 payday transactions in 2025.

Kentucky Lending Law Changes, 2023 to 2026

• June 29, 2023. Consumer loan rate tiers of 3%, 2.42% and 2.25% a month, and the 5% processing fee capped at $150.
• July 15, 2024. Kentucky repealed its title pledge lending law, KRS 286.10. A consumer loan company can still take a car title as security, within its rate caps.
• July 15, 2026. Senate Bill 219 raised the payday limit from $500 to $600, added yearly inflation updates up to $850 and set the database fee at $3.

Asking for a Kentucky Loan Offer in Three Steps

1. Pick the loan: up to $600 for a few weeks points to payday; more, or monthly payments, to a consumer loan.
2. Submit one request through LendUp. Lenders in our network review it, and any offer shows the APR, payments and total cost before you sign.
3. Before signing, check that the lender holds the right Kentucky license.

Checking a Kentucky License With DFI or NMLS

1. Open DFI's licensee search and choose Search the DFI database.
2. Enter the legal name; look for a consumer loan company or check casher / deferred deposit license.
3. DFI licenses these companies through NMLS, so NMLS Consumer Access works too.

Questions: DFI at 502-573-3390 or [email protected]. Complaints: DFI's online form.

Common Questions

Official Sources

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