What a loan can cost in Kentucky
Examples at an illustrative rate, never above Kentucky's cap for the amount. They are not quotes.
Representative example
- Amount borrowed
- $500
- Annual percentage rate (APR)
- 29.99%
- Repayment
- 12 monthly payments
- Payment
- $48.74
- Finance charge
- $84.88
- Total of payments
- $584.88
Example: a $500 installment loan at 29.99% APR repaid in 12 monthly payments of $48.74 costs $584.88 in total, including a finance charge of $84.88. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Representative example
- Amount borrowed
- $1,000
- Annual percentage rate (APR)
- 29.99%
- Repayment
- 12 monthly payments
- Payment
- $97.48
- Finance charge
- $169.76
- Total of payments
- $1,169.76
Example: a $1,000 installment loan at 29.99% APR repaid in 12 monthly payments of $97.48 costs $1,169.76 in total, including a finance charge of $169.76. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Representative example
- Amount borrowed
- $3,000
- Annual percentage rate (APR)
- 29.99%
- Repayment
- 12 monthly payments
- Payment
- $292.45
- Finance charge
- $509.40
- Total of payments
- $3,509.40
Example: a $3,000 installment loan at 29.99% APR repaid in 12 monthly payments of $292.45 costs $3,509.40 in total, including a finance charge of $509.40. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.
Resources in Kentucky
Free and low-cost help in Kentucky, each with its official link and the date we checked it.
Lending regulator and complaints
Kentucky Department of Financial Institutions (DFI) licenses lenders in Kentucky.
Check a lender's license File a complaint
kfi.ky.gov Checked September 23, 2026
Attorney general consumer protection
Takes complaints about scams and unfair debt collection.
ag.ky.gov Checked September 23, 2026
211
Help with rent, utilities, food and other urgent bills.
kentucky211.org Checked September 23, 2026
Legal aid
Free civil legal help if your income is low; income limits vary.
yourlegalaid.org Checked September 23, 2026
Nonprofit credit counseling
Help with a budget or a debt management plan.
nfcc.org Checked September 23, 2026
Benefits portal
Check whether you qualify for food, cash or other benefits in Kentucky.
kynect.ky.gov Checked September 23, 2026
Federal complaints
Complaints about any lender, to the Consumer Financial Protection Bureau.
Submit a complaint to the CFPB
consumerfinance.gov Checked September 23, 2026 Available in Spanish
Cheaper options to try first
Worth checking whatever your credit: these can cost less than a high-rate loan.
- Credit union payday alternative loans (PALs). Federal credit unions may offer small loans of up to $2,000 with terms of up to 12 months and an APR no higher than 28%, under NCUA rules (12 CFR 701.21). You usually need to be a member.
- Ask your creditor for a payment plan. Utilities, hospitals and many lenders offer hardship or extended payment plans if you ask before you miss a payment.
- Credit-builder loans: a small loan held in savings while you pay it off, which can help build a payment history.
- Secured credit cards: a card backed by a deposit you make, which can help build credit when you pay on time.
The rules lenders follow in Kentucky
Each rule links to its source. How we research state rules.
Allowed in Kentucky: installment and personal loans and payday loans.
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Installment and personal loans[1][2][3] | Allowed | 36% APR (top tier) | Up to $15,000 | Not set by statute | Consumer Loan Company license | KRS 286.4-530; general usury statute KRS 360.010 |
| Title loans[4][5][6][3] | RestrictedHigh-cost loan | 36% APR | Not set by statute | Not set by statute | No title pledge license exists after the 2024 repeal | 2024 Ky. Acts ch. 152, Section 43; KRS 286.4-530 |
| Payday loans[7][8][9][3] | AllowedHigh-cost loan | Fee cap | Up to $500 | 14 days to 2 months | Deferred Deposit Service Business license | KRS ch. 286, subtitle 286.9, esp. KRS 286.9-100 and 286.9-140 |
| Verified against the statute and regulator on September 23, 2026. Laws change; confirm with the regulator before you borrow. | ||||||
Bars place each APR cap on a 0 to 400% scale; the pin marks the cap. A striped bar means the statute sets no numeric cap.
Rate, fee and license rules in Kentucky
Installment and personal loans
- Rate cap
- KRS 286.4-530: a licensed consumer loan company may lend up to $15,000 (excluding charges) and charge interest of 3% per month on the part of the loan up to $5,000, 2.42% per month on the part from $5,000 to $10,000, and 2.25% per month on the part from $10,000 to $15,000 (roughly 36%, 29% and 27% per year). The general 19% usury cap (KRS 360.010) applies to unlicensed lenders, not to consumer loan licensees.
- Fees
- Beyond interest, only public filing/recording/release fees actually paid, identifiable insurance premiums, and certificate-of-title lien notation/release/transfer fees; no other charge of any kind (KRS 286.4-530).
- License
- Consumer Loan Company license under KRS ch. 286 (Kentucky Financial Services Code, consolidating former ch. 288), issued by the Kentucky Department of Financial Institutions (DFI).
Title loans
- Rate cap
- Kentucky's title pledge lending subtitle (KRS 286.10-200 to 286.10-285 and 286.10-991) was repealed by 2024 Ky. Acts ch. 152 (HB 726, signed April 9, 2024), so the Title Pledge Lender license no longer exists. A vehicle-secured consumer loan may still be made by a licensed consumer loan company under KRS 286.4-530 at that statute's rates (3%/2.42%/2.25% per month tiers, up to $15,000), which contemplates certificate-of-title lien fees. High-cost title pledge/title loan products are not available.
- Fees
- If made by a consumer loan licensee: only the charges allowed by KRS 286.4-530, including fees for noting or releasing a lien on a certificate of title.
- License
- No title pledge license exists after the 2024 repeal; vehicle-secured consumer loans require a consumer loan company license under KRS 286.4 from the Kentucky Department of Financial Institutions.
Payday loans
- Rate cap
- Kentucky's Deferred Deposit Service Business and Check Cashing statute (KRS ch. 286, subtitle 286.9) does not impose a numeric APR cap; it caps the service fee instead. A licensee may not charge a service fee exceeding $15 per $100 of the face amount of the deferred deposit check, prorated for smaller amounts. The fee is legally deemed a service fee, not interest.
- Fees
- Service fee capped at $15 per $100 of the check's face amount (prorated), for a period of at least 14 days.
- License
- Deferred Deposit Service Business license under KRS ch. 286, subtitle 286.9, issued by the Kentucky Department of Financial Institutions (DFI).
Rent and jobs in Kentucky
Typical rent and the jobless rate, to weigh before a loan payment.
Guides for Kentucky borrowers
Check your options in Kentucky
Kentucky questions
Does Kentucky law allow payday loans?
Kentucky law allows payday loans. State law caps the fee rather than the APR. Source: KRS ch. 286, subtitle 286.9, esp. KRS 286.9-100 and 286.9-140.
What is the most a lender can charge in Kentucky?
By loan type in Kentucky: Installment and personal loans: 36% APR (top tier). Title loans: 36% APR. Payday loans: Fee cap.
Where can I file a complaint about a lender in Kentucky?
You can file a complaint with Kentucky Department of Financial Institutions (DFI), and you can also submit one to the Consumer Financial Protection Bureau. Both links are under Resources in Kentucky on this page.
How do I check a lender's license in Kentucky?
Kentucky Department of Financial Institutions (DFI) licenses lenders in Kentucky. Use the license link under Resources in Kentucky on this page to check a lender before you share your information.
Is there free help paying bills in Kentucky?
Yes. Resources in Kentucky on this page lists free help, including 211, legal aid, nonprofit credit counseling and benefits portal.
Nearby states
- TennesseeAllowed 24% APR
- IndianaAllowed 36% APR (top tier)
- OhioAllowed 25% APR
- West VirginiaAllowed 31% APR (top tier)
- IllinoisAllowed 36% APR
Sources
- Justia. law.justia.com/codes/kentucky/2015/chapter-288. Retrieved September 23, 2026.
- codes.findlaw.com. KRS 286.4-530. Retrieved September 23, 2026.
- kfi.ky.gov. Kentucky Department of Financial Institutions (DFI). Retrieved September 23, 2026.
- apps.legislature.ky.gov/recorddocuments/bill/24RS/hb726/bill.pdf. Retrieved September 23, 2026.
- apps.legislature.ky.gov/RECORD/24rs/hb726.html. Retrieved September 23, 2026.
- apps.legislature.ky.gov. 2024 Ky. Acts ch. 152, Section 43. Retrieved September 23, 2026.
- Justia. law.justia.com/codes/kentucky/chapter-286/subtitle-286-9. Retrieved September 23, 2026.
- apps.legislature.ky.gov/law/statutes/statute.aspx. Retrieved September 23, 2026.
- codes.findlaw.com. KRS ch. 286, subtitle 286.9, esp. KRS 286.9-100 and 286.9-140. Retrieved September 23, 2026.
- National Low Income Housing Coalition. Out of Reach 2026: Kentucky. Retrieved September 23, 2026.
- U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.
Important disclosures
APRs vary by lender and state in Kentucky. Each lender sets its own rates and terms and must show you the APR before you sign.
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- Questions about a lender licensed in Kentucky? Contact the Kentucky Department of Financial Institutions (DFI) or file a state complaint.
- You can submit a complaint about any lender to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.