Payday loans in Kentucky
Under KRS Subtitle 286.9, licensed companies in Kentucky may offer payday loans via deferred deposits, but the state may not grant new deferred deposit licenses.
- Payday lending
- Allowed
- Max cost
- $15.00 per $100 borrowed
- Top amount
- All open deferred deposit transactions together may not exceed $600 in total proceeds (the figure moves with CPI each year and can never pass $850).
At that cap, a $100 loan over 14 days can carry $15.00 in fees: $115.00 back in total, close to 391% APR.
Are payday loans legal in Kentucky?
Licensed companies in Kentucky may legally offer payday loans under the Kentucky Check Cashing and Deferred Deposit law. With a deferred deposit loan, your check stays with the lender for 14 to 60 days before they cash it. At any one time, you may hold no more than two open loans; from July 15, 2026, total cash may be up to $600. For every $100 on the check, the maximum fee allowed is $15. When your loan becomes due, lenders may not charge any fee to renew, roll over, or consolidate it.
In 2009, Kentucky halted new payday licenses, then made that ban permanent on June 27, 2019. A payday license is unavailable to any new company. Due to this ban, you should review the license search at the Kentucky Department of Financial Institutions before applying to any lender. A state database checks every loan, and lenders must display a sign stating borrowers will not face prosecution for cold checks.
- Kentucky banned new payday (deferred deposit) licenses: the 2009 moratorium became permanent, and the current ban started June 27, 2019.
- Veritec Solutions runs a statewide database for DFI that checks every payday loan in real time.
- Senate Bill 219 passed into law during April 2026 despite no Governor's signature. From July 15, 2026, the total loan limit is $600, and yearly CPI changes may raise it only to $850.
- DFI must also charge a $3 database fee for each transaction under SB 219.
- A sign must be posted by lenders stating that writing cold checks will not lead to prosecution for borrowers.
Kentucky payday loan laws
- Law in force
- Kentucky law on check cashing and deferred deposits (KRS Subtitle 286.9)
- Cited as
- KRS 286.9-100, 286.9-140, 286.9-071
- Fees under the law
- For a deferred deposit check, the fee is $15 per $100 of the face amount
- Most you can borrow
- All open deferred deposit transactions together may not exceed $600 in total proceeds (the figure moves with CPI each year and can never pass $850).
- How long a loan runs
- 14 days (the service fee covers at least that long) to 60 days
- Rollovers
- A deferred deposit transaction may not be renewed, rolled over, or otherwise consolidated for a fee.
- Loans you can hold at once
- A customer may have no more than two deferred deposit transactions at any one time.
- Installment lending limits
- Loans up to $5,000 may carry a monthly rate of three percent (3%) from consumer loan licensees (KRS 286.4-530), while larger loans have lower monthly rates.
Also checked against apps.legislature.ky.gov. Full statute text.
Online lenders that list Kentucky
Ten companies we track say they lend in Kentucky: 3 online installment lenders, 6 tribal lenders and 1 loan broker.
| Lender | Kind | Posted APR |
|---|---|---|
 NetCredit | Installment | 34.99% to 99.99% |
 OppLoans | Installment | 99% to 195% |
 Rise Credit | Installment | 60% to 299% |
 Viva Payday Loans | Broker | Partner lenders quote 4.99% to 1,386% |
Tribal loans in Kentucky
Since 2009, Kentucky has granted no new payday licences (KRS 286.9-071), meaning an online payday lender missing from DFI's licence list cannot obtain one. Loans from unlicensed online or tribal lenders fall outside Kentucky's $600, two-loan cap because the real-time database (KRS 286.9-140) tracks only licensed lenders.
On the immunity claim tribal lenders make, see are tribal loans legal.
Six tribal lenders we track list Kentucky as a state they lend in. Three of the six publish an APR, from 73.7% to 725%.
| Lender | Posted APR |
|---|---|
 Mobiloans | 73.7% to 405% |
 Spotloan | 99% to 490% |
 BrightLending | 325% to 725% |
 MaxLend | Not published |
 Minto Money | Not published |
| American Web Loan | Not published |
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Lender cases and orders in Kentucky
Kentucky and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| Kentucky | Allowed | $15.00 per $100 borrowed | All open deferred deposit transactions together may not exceed $600 in total proceeds (the figure moves with CPI each year and can never pass $850). |
| Illinois | Banned | 36% APR | None allowed |
| Indiana | Allowed | $15.00 per $100 borrowed | The statute sets $550 as the base, which the DFI rule lifts to $825, with a rise to $880 from January 1, 2027. |
| Missouri | Allowed | Fees and interest can go up to 75% of the loan, and that includes renewals. | You may owe no more than $500 at once to one lender and its affiliates. |
| Ohio | Only as installments | None in the law | Each loan is limited to $1,000, and the total outstanding short-term principal for one borrower cannot exceed $2,500. |
| Tennessee | Allowed | $15.00 per $100 borrowed | The total face value for outstanding checks is $500. |
| Virginia | Only as installments | None in the law | $2,500 |
| West Virginia | Banned | None in the law | None allowed |
Kentucky loans with no credit check
Installment loan rates: Loans up to $5,000 may carry a monthly rate of three percent (3%) from consumer loan licensees (KRS 286.4-530), while larger loans have lower monthly rates.
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in Kentucky
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the Kentucky Department of Financial Institutions (DFI).
- Had trouble with a lender? Report the lender.
Sources for Kentucky
- The cap on fees is $15 per $100 of the check face amount.; The service fee applies for a period of at least 14 days.; The longest a hold may last is 60 days.apps.legislature.ky.gov
- Without the Governor's signature, SB 219 (2026) became law.; A $3 per-transaction database fee was added by SB 219, which also raised the total proceeds limit to $600.apps.legislature.ky.gov
- Kentucky maintains a common real-time database for deferred deposit transactions.; The real-time database serves licensed deferred deposit businesses.apps.legislature.ky.gov
- DFI has Veritec Solutions operate the database.kfi.ky.gov
- Issuing new deferred deposit licenses is not allowed.; Effective June 27, 2019, the section banning licenses took its current form.apps.legislature.ky.gov
- Consumer loan licensees can charge 3% per month for loans up to $5,000.apps.legislature.ky.gov
- A licensee search is offered by DFI.kfi.ky.gov
- DFI accepts complaints regarding the entities it regulates.kfi.ky.gov