Loan Rates and Fees in Kentucky

A licensed lender can charge up to $15 per $100 borrowed - labeled "finance charge" on your agreement - on loans up to $500, with terms of 14 to 60 days. Your total outstanding payday balance across all lenders can't exceed $500, tracked through a statewide database.

On a $300 loan due in 14 days, the maximum fee is $45, making your total repayment $345. Your agreement will show roughly 391% APR - that's the 14-day fee scaled to a full year, required by federal disclosure rules.

• Rollovers are prohibited - the lender can't extend or renew your loan for an additional fee.
• Only one returned payment fee is allowed per failed payment attempt - the amount must be disclosed in your agreement before you sign.
• A database verification fee of up to $1 per transaction is allowed as a separate line item; if you see a higher amount, question it before signing.

If an offer exceeds these limits, verify with the Kentucky Department of Financial Institutions.

Licensed consumer loan company lenders in Kentucky use a declining-balance interest model. The rate cap depends on the outstanding principal:

Lenders may charge a loan processing fee (labeled "loan processing fee" on your agreement) of up to $75 - this is a one-time upfront charge separate from interest. If your loan is funded electronically rather than by paper check, a funding fee of up to $3 is also allowed.

On a $1,000 loan at 3% monthly declining balance for 12 months, you'd repay approximately $1,206 total - roughly $206 in interest plus $1,000 in principal, before any processing fee.

• Refinancing restarts interest on the new balance - compare your remaining balance to the new loan's total of payments before you agree.
• The returned payment fee is $25 or the actual amount charged by the financial institution or payment processor, whichever is greater, per failed payment attempt.
• Late fees: the default charge under your agreement applies after the grace period; alternatively, the lender may charge up to 5% of the scheduled installment or $15, whichever is greater - confirm which applies on your agreement.
• You can prepay in full at any time with no penalty - interest stops accruing on the payoff date. See the Kentucky installment loans page for repayment details.

If an offer exceeds these limits, verify with the Kentucky Department of Financial Institutions.

• Returned payment fee: for payday, only one fee per failed attempt (amount must be disclosed); for installment, $25 or the actual processor charge, whichever is greater.
• Total of payments: the single most important number - add principal, interest, and every fee to confirm what you'll actually pay back over the full term.
• Military households: if you or your spouse are active duty, the all-in cost can't exceed 36% MAPR under federal law - compare to the APR on your offer.