State reference · KY
Kentucky lending rules
Kentucky has 416 Census places covered on Paydayloaning, with a combined estimated population of 1,897,465. Payday and small-loan terms in Kentucky are set by licensed lenders under state law; the sourced rules below apply to every borrower in the state.
Advertising disclosure: Paydayloaning may receive a referral fee if you apply through the link above. That fee does not change the rate you are offered, and it does not change our content. We are not a lender. The lowest rates are only available to the most qualified applicants. Read the full disclosure.
The verdict
Permitted under license
Source: Kentucky Department of Financial Institutions · as of 2026-09-16
- Maximum rate
- Up to 19% per annum, or 4% over the 90-day commercial-paper discount rate…
- Kentucky Legislative Research Commission (Kentucky Revised Statutes)
- Licensing
- Consumer Loan Company license required (KRS Chapter 286.4)
- Kentucky Department of Financial Institutions
- Regulator
- Kentucky Department of Financial Institutions (DFI)
- Kentucky Department of Financial Institutions
Rules are quoted from the cited sources. How payday lending is regulated.
Key rules for borrowers in Kentucky
Quoted from the statute, regulator or agency named in each row.
| Rule | Detail | Source |
|---|---|---|
| Maximum legal interest rate (usury cap) | Up to 19% per annum, or 4% over the 90-day commercial-paper discount rate, whichever is less (by written agreement) Source says: "At a per annum rate not to exceed four percent (4%) in excess of the discount rate on ninety (90) day commercial paper ... or nineteen percent (19%), whichever is less". |
Kentucky Legislative Research Commission (Kentucky Revised Statutes) as of 2026-09-16 |
| Payday lending status | Permitted under license (deferred deposit service business; payday loans) Source says: "The Kentucky Department of Financial Institutions (DFI) has secured the services of Veritec Solutions, LLC to provide a common database with real-time access for deferred deposit transactions". |
Kentucky Department of Financial Institutions as of 2026-09-16 |
| Small-loan / installment lender licensing | Consumer Loan Company license required (KRS Chapter 286.4) Source says: "How to License a Consumer Loan Company: 1. Read KRS 286.4 and the applicable administrative regulations under KAR 808, Chapter 6". |
Kentucky Department of Financial Institutions as of 2026-09-16 |
| State lending regulator | Kentucky Department of Financial Institutions (DFI) Source says: "The Department of Financial Institutions' mission is to serve Kentucky residents by promoting access to a stable financial industry, implementing effective and efficient regulatory oversight". |
Kentucky Department of Financial Institutions as of 2026-09-16 |
| Consumer Loan Company license — statutory basis | License required from the commissioner to make loans at a greater rate of interest than otherwise permitted by law Source says: "No person shall, without first obtaining a license from the commissioner, engage in the business of making loans ... at a greater rate of interest". |
Kentucky Legislative Research Commission (Kentucky Revised Statutes) as of 2026-09-16 |
Cities in Kentucky
All Kentucky citiesWe cover 416 Census places in Kentucky.
Advertising disclosure: Paydayloaning may receive a referral fee if you apply through the link above. That fee does not change the rate you are offered, and it does not change our content. We are not a lender. The lowest rates are only available to the most qualified applicants. Read the full disclosure.