From the rolling hills of East Tennessee to the lively music scene of Nashville, the Volunteer State is rich in history and culture. Short-term loans are legal in Tennessee, often as payday-style products. State laws set maximum loan amounts, term lengths, and fees, providing a measure of consumer protection.
Short-Term Personal Loan Rates and Fees in Tennessee
Tennessee law governs short-term lending with clear rules. Maximum loan amounts and finance charges are capped. Reviewing the terms closely helps you to find the best financial option.
APRs
Tennessee sets rules around fees, which can be up to 15% of the loan amount. Before accepting a loan, always confirm the total amount owed, including all fees.
Loan Amounts
The maximum payday-style loan amount allowed in Tennessee is generally $500. Lenders cannot exceed this limit, ensuring borrowers don’t take on more debt than the state allows.
Terms
Loan terms usually range from a minimum of 7 days to a maximum of 31 days. This quick turnaround means you must be sure you can repay on time. If you struggle, Tennessee law allows for up to two renewals (rollovers), but you must pay at least 5% of the principal each time you renew.
Fees
Lenders in Tennessee can charge up to 15% of the face value of the check for payday-style loans. For example, the finance charge on a $500 loan could be up to $75. Given your next paycheck or expected income, consider whether this fee plus the principal is affordable.
Short-Term Loan Example
For a $500 loan due in two weeks with a 15% finance charge:
- Loan Amount: $500
- Finance Charge: $75 (15% of $500)
- Loan Term: 2 weeks
- Total Repayment: $575 at the end of the term
Lending Regulations in Tennessee
The Tennessee Department of Financial Institutions regulates payday and short-term loans. The state maintains a database to track borrowers’ loans, preventing multiple overlapping loans that exceed legal limits. For official details, visit the Tennessee Department of Financial Institutions.
| Regulation | Details |
|---|---|
| Maximum Loan Amount | $500 |
| Term Length | 7 to 31 days |
| Fees | Up to 15% of the loan amount |
| Rollovers | Up to 2 renewals must reduce the principal by 5% each time |
| Database | The statewide database tracks loans to prevent overlapping excessive borrowing |
Our Benefits
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How to Apply for a Short-Term Loan in Tennessee
Approved applicants may receive funds as early as the next business day.
Provide Your Information
Fill out a short online form detailing the amount you need and basic financial information.We Check Lender Offers
We review your data and match it with available lenders in our network.Review Terms and Get Funded
Read the lender’s conditions carefully. If you agree and qualify, funds can be transferred directly to your account.Loan Alternatives in Tennessee
Emergency Loans
Emergency loans help cover urgent expenses quickly, sometimes with more transparent and flexible terms.
Personal Loans
Personal loans often offer more significant amounts and extended repayment periods, possibly at more competitive interest rates.
Installment Loans
Installment loans spread repayment over multiple payments, making budgeting and managing your debt more manageable.
Bad Credit Loans
Bad credit loans cater to those with lower credit scores, providing opportunities to access funds and potentially rebuild credit.
FAQ
Are Short-Term Loans Legal in Tennessee?
Yes. Tennessee permits regulated payday-style lending with strict caps on loan size, fees, and terms. Lenders must be licensed and follow state laws.
What Are the Requirements for Applying for a Short-Term Loan in Tennessee?
Typical requirements include:
- At least 18 years old
- U.S. citizenship or permanent Tennessee residency
- Valid Social Security number
- Regular income source
- An active checking account
What Are the Top 5 Cities for Short-Term Loans in Tennessee?
Although short-term loans are available statewide, larger cities may have more storefront lenders:
- Nashville
- Memphis
- Knoxville
- Chattanooga
- Clarksville
Online options make it easy to apply from anywhere in the state.
How Do Tennessee’s Rules Compare to Other States?
Tennessee enforces a maximum loan amount, caps fees, and limits rollovers. While this doesn’t eliminate high costs, it provides more structure than states without restrictions.
Is a Short-Term Loan the Same as a Cash Advance?
Cash advances are often referred to as credit card advances or paycheck advances. Licensed lenders make Tennessee’s short-term loans, and the state regulates fees and terms.
Are There Guaranteed Short-Term Loans in Tennessee?
No. Legitimate lenders review your financial details before approval. Be wary of “guaranteed” offers without any checks.