Kentucky Payday & Small-Dollar Loan Laws
Payday loans legal
Kentucky caps payday loans at $500 with a maximum fee of $15 per $100. A statewide database tracks loans to prevent borrowers from exceeding the cap.
Kentucky Lending Overview
Kentucky law permits payday lending while maintaining specific limits to govern the industry. Residents may borrow a maximum of $500 for a duration between 14 and 60 days. Lenders typically charge a fee of $15 for every $100 borrowed, which results in an annual percentage rate of approximately 460%. To ensure compliance with the borrowing cap, the state utilizes a tracking database that prevents individuals from holding more than two loans at once or exceeding the total $500 limit.
Borrowers in the state utilize various financial products to cover immediate expenses, ranging from short-term payday loans to longer-term installment plans and personal loans. While payday options provide bridge funding for small amounts, individuals seeking larger sums or longer repayment periods often look toward personal loans. These varied options serve as common resources for addressing emergency repairs, medical bills, or other unexpected costs that arise between pay periods.
Maximum loan amount
$500
Maximum loan term
14–60 days
Maximum APR / finance charge
~460% APR
Rollover / renewal rule
No rollovers permitted
Cooling-off period
None required
Governing statute
KRS § 286.9
Who regulates lenders in Kentucky
Kentucky Department of Financial Institutions
File a complaint with the regulator above if a lender violates state law. You can also file with the CFPB.
Kentucky loan options
Other state loan laws
Reviewed by Darnell Pierce, MBA. Last reviewed January 2026. This page is informational, not legal advice — verify current rules with the state regulator before borrowing.