Payday Loans

Last updated: August 6, 2016

What is a Payday Loan?

A Payday Loan is a consumer loan transaction with the following qualities:

  • The loan amount is equal to or less than $500
  • The payment term is between 7 and 30 days
  • The lender anticipates a single repayment.

How Much Can a Licensed Lender Charge For a Payday Loan?

A licensed Supervised Lender can charge no more than 15% of the amount of the payday loan.

  • Remember that depending upon the term and amount of the loan, 15% of the amount financed can calculate to an APR of much higher. 
  • For example, the APR for a $100 payday loan, with a finance charge of 15%, and a term of 14 days, is 391.07%.

What Additional Fees Can a Payday Lender Charge?

A licensed payday lender can charge one NSF (non-sufficient funds) fee and 3% per month of the outstanding loan amount after the due date.

  • For example – after the maturity date of a $300 payday loan, the lender can charge an additional $9 per month.

This article is published on KansasMoney.gov. Find more information by contacting these state agencies: