Kentucky maximum interest rate is the answer to “maximum interest rate allowed by law in Kentucky”. This guide gives the Kentucky figures in a dated table, explains in plain words what they mean, walks through the steps, and points to the official forms and free help.
The Kentucky maximum interest rate figures on this page were verified against a dated 50-state compilation and Kentucky sources as of October 2026; the statute named here is where to check them yourself.
Kentucky maximum interest rate at a Glance
| Legal rate when no rate is agreed | 8% per year absent an agreement |
| Maximum rate in a written contract | in writing, up to 4 points over the Federal Reserve discount rate on 90-day commercial paper or 19%, whichever is less, for amounts up to $15,000 |
| Statute | KRS 360.010 |
In This Kentucky maximum interest rate Guide:
What the Kentucky Maximum Interest Rate Means
In Kentucky, usury means charging more interest than state law allows. The legal rate applies when a loan or debt has no agreed rate. The contract cap is the highest rate a lender and borrower can agree to in writing. Above the dollar threshold in the statute, Kentucky lets the parties agree to any rate in writing, so the cap mainly protects smaller loans.
The Kentucky maximum interest rate Figures
| Rule | Bonus Bank Daily verified figure |
|---|---|
| Legal rate when no rate is agreed | 8% per year absent an agreementcompilation / agency — verified Oct 2026 |
| Maximum rate in a written contract | in writing, up to 4 points over the Federal Reserve discount rate on 90-day commercial paper or 19%, whichever is less, for amounts up to $15,000compilation / agency — verified Oct 2026 |
| Statute | KRS 360.010compilation / agency — verified Oct 2026 |
The Kentucky maximum interest rate figures on this page were verified against a dated 50-state compilation and Kentucky sources as of October 2026; the statute named here is where to check them yourself.
Who the Kentucky Maximum Interest Rate Applies To
The general cap covers private lenders, individuals and businesses that lend under ordinary written agreements without a special license. Banks chartered in other states and national banks may in most cases charge the rate their home state allows, under federal law. Consumer loan companies and deferred-deposit (payday) lenders licensed under KRS Chapter 286 follow their own rate and fee rules, which are separate from the general cap.
Credit cards are usually issued by out-of-state or national banks, so the Kentucky cap generally does not limit them.
Credit Cards and the Kentucky Maximum Interest Rate
Federal banking law (12 U.S.C. 85) lets a national bank charge the interest rate allowed in the state where the bank is based, even when the cardholder lives in Kentucky. Many card issuers are based in states with high or no rate limits, so a card rate above the Kentucky cap is usually legal. Confirm the issuer’s home state in the cardholder agreement.
What Happens When a Lender Breaks the Kentucky Maximum Interest Rate
When a loan breaks the cap, the borrower may be able to recover the excess interest or more, depending on the statute, and charging above a criminal threshold can be a crime.
How to Check a Loan Against the Kentucky Maximum Interest Rate
1) Find the loan agreement and note the stated rate, the amount borrowed and whether the agreement is in writing. 2) Look for the APR in the Truth in Lending disclosure. The APR includes many fees as well as the stated interest. 3) Check whether the lender is a bank, a licensed consumer or payday lender, or a private party, because different rules apply.
4) For a private lender, compare the rate with the KRS 360.010 cap that applies to the loan amount. 5) Confirm with the statute, the Department of Financial Institutions or an attorney.
Where to Report a Loan Above the Kentucky Maximum Interest Rate
The Kentucky Department of Financial Institutions (DFI) licenses consumer loan companies and payday lenders and takes complaints about them. Its mailing address is 500 Mero Street, Frankfort, KY 40601, and its toll-free number is 800-223-2579. Complaints about banks and card issuers can also go to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.
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Common Mistakes With Kentucky maximum interest rate
The most common mistake is missing a deadline: court and creditor deadlines run whether or not you have read the papers, and a missed one usually cannot be undone. The second is relying on an old article or a friend’s experience in another state — the rules on this page differ from state to state and change often, which is why every figure here is dated.
The third is not keeping copies: every letter, form, receipt and bank statement may matter later, so keep them together and note the date you received each one.
Free Help With Kentucky maximum interest rate in Kentucky
You do not have to handle this alone or pay to get answers. The Kentucky court self-help center explains the forms and the steps, and court clerks can tell you where and how to file, although they cannot give legal advice.
Legal aid organizations represent many people at no cost when income is limited, and the Kentucky bar’s lawyer referral service can connect you with a lawyer for a low-cost first consultation. The Consumer Financial Protection Bureau accepts complaints about lenders, banks and debt collectors nationwide.
How We Verify the Kentucky maximum interest rate Figures
Every figure in the table above comes from our 50-state data file, built by reading the Kentucky statute or an official compilation of it, and each one carries the month we last checked it. Our writers do not change those figures; they explain them. When the law changes, the figure is updated and the date moves.
If something on this page no longer matches the statute, the statute controls — and we want to hear about it.
Under KRS 360.025 and 360.027, corporations, limited partnerships, LLCs and business trusts generally cannot use excessive interest as a defense, so the usury protections mainly help individual borrowers. Under the 2018 amendment to KRS 360.010, a written contract that sets no rate still earns interest at the legal rate after default until judgment. Interest after judgment is set separately by KRS 360.040.
Next rung: the Kentucky payday loan page covers the short-term loans that have their own caps.
Kentucky — the bottom line
- Kentucky maximum interest rate rules set two numbers — the legal rate and the written-contract cap — both in the table above.
- Many lenders sit outside the Kentucky maximum interest rate cap by license or charter, so check which rule covers your loan.
- If a loan breaks the Kentucky maximum interest rate rules, keep the agreement and report it to the state regulator.
Kentucky Maximum Interest Rate FAQ
What is the maximum interest rate allowed by law in Kentucky?
Without an agreement: 8% per year absent an agreement. In a written contract: in writing, up to 4 points over the Federal Reserve discount rate on 90-day commercial paper or 19%, whichever is less, for amounts up to $15,000.
Official Kentucky Sources & Resources
- Statute and the Conference of State Bank Supervisors 50-state usury survey (verified by each state regulator) — maximum legal interest rate: https://www.csbs.org/50-state-survey-consumer-finance-laws
- Statute and the Conference of State Bank Supervisors 50-state usury survey (verified by each state regulator) — maximum legal interest rate: https://facts.csbs.org/consumer-finance-law/dev
- Kentucky statute / opinion: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=39032
- Kentucky Department of Financial Institutions: https://kfi.ky.gov
- Consumer Financial Protection Bureau: consumerfinance.gov
This Kentucky maximum interest rate guide was last verified against official Kentucky sources in October 2026. Rules change — confirm the current rule with the statute or a licensed attorney.
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Disclaimer: This guide is general information, not legal or financial advice. Bonus Bank Daily is an independent educational resource — not a law firm, not a bank, not a debt collector and not a government agency. Judgment, levy, interest-rate and debt rules change — every figure here carries the date we verified it.
Confirm the current rule with the statute, the court clerk or a licensed attorney in your state before you act.