Looking for a loan in Kentucky? Find out how to get your short-term loan below!
There are lots of cash based short term loans available throughout the United States and payday loans can be one handy choice in many of the states. This is a loan that comes with a very short application process and literally all you need is to hold a citizenship or be a legal resident of the US residing in Kentucky and some paperwork to prove that you hold a job and have a regular salary.
With all this, payday loans are not considered legal in every state. This is where many people turn to lenders who are offering loans from other different states. Let’s see what the situation is in the State of Kentucky.
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What are the payday loan laws and regulations in Kentucky?
Paydays loans are called short term loans in state of Kentucky and they are regulated by Kentucky Revised Statutes Ann. §§ 286.9.010 et seq. the law especially focuses on the maximum amount to be borrowed by borrowers and the amount of loans a lender can provide
- Maximum amount of short term loan has to be USD 500 and this is called cash advance
- Minimum loan amount generally USD 50 • One person cannot apply for more than two payday loans
- APR can be as high as 459% as it is largely unregulated for short-term loans
How much can you be charged by a payday lender in Kentucky?
Here are some of the basic fees borrowers need to pay when they opt for a payday loan in Kentucky
- Finance fee: 15%
- Database fee: USD 1
- Additional finance charge: 17%
- Collection fee: NSF can be freely defined by the lender therefore this is a sum to watch out for as it may change from lender to lender.
Everyone is highly advised only to opt for a payday loan if they are absolutely sure that they are able to pay it back. Make sure you know of all the additional charges and fees each lender applies.
Your rights as a borrower in KY
By law a lender cannot provide more than two short term loans for the same person in the same time and when more than one loan is provided this also means that their collective amount should not exceed USD 500 either. This is to avoid debt traps.
Although the state tries to alert everyone to keep them aware of the dangers of getting short term loans, there are still many people who opt for these and as a result they sink so deep in debt that endangers their basic living conditions. If you are in a debt trap check out options to help you pay your debt back and make a debt consolidation plan for you.