South · Allowed
Payday loans in Tennessee
Storefront payday lending is permitted in Tennessee. State law caps what lenders can charge — the limits below are the legal ceiling, and honest lenders stay under it.
The limits below are the legal ceiling — any offer above them is being made outside the law.
The rules behind the numbers
Deferred presentment transactions are short-term financial solutions and are not intended for long-term borrowing needs.
In practice: borrow $300 for a standard term and the finance charge is $45 — $345 repaid at the end, about 459% APR. Every compliant lender in Tennessee has to fit inside that schedule.
Statute: Tenn. Code Ann. § 45-17-101 et seq.
Regulator: Tennessee Department of Financial Institutions · www.tn.gov
Questions people ask here
How much can a payday loan cost in Tennessee?
State law caps fees at 15% of face value of check ($17.65 per $100 advanced). On a typical $300 loan that works out to about $45 in finance charges — repaying $345 in total. A lender charging more than the cap is operating illegally.
What happens if I can't repay on time in Tennessee?
This state's rules on rolling the loan over: forbidden. If you can't pay, ask the lender for an extended payment plan before you renew — and call the state regulator if the plan is refused.
Are online payday lenders legal in Tennessee?
Only lenders licensed in Tennessee may make loans to residents at these terms — the license, not the website, decides what's legal. Out-of-state lenders offering terms above the state cap are operating outside the law.
Who regulates payday lenders in Tennessee?
Complaints about a licensed lender go to the Tennessee Department of Financial Institutions (www.tn.gov) — keep the loan agreement and every fee disclosure you were given.
371 storefront lender locations listed statewide in the 2022-02-20 public directory snapshot — each city guide carries its local list.