Loans in Tennessee: payday, personal & title loan laws (2026)
Payday Loans Legal
Payday loans (deferred presentment services) are legal in Tennessee from lenders licensed by TDFI under the Deferred Presentment Services Act, Tenn.
Personal Loans
36% effective rate for industrial loan and thrift loans of $100+ (since July 2025); flex loans 24% plus fee.
Title Loans Legal
Title loans (title pledge loans) are legal in Tennessee from lenders licensed by TDFI under the Title Pledge Act, Tenn.
Tennessee at a glance
Counties in Tennessee
Cities in Tennessee
Frequently asked questions
Are payday loans legal in Tennessee?
Payday loans (deferred presentment services) are legal in Tennessee from lenders licensed by TDFI under the Deferred Presentment Services Act, Tenn. Code Ann. § 45-17-101 et seq. A license is also required to make these loans online or by phone to consumers located in Tennessee.
How much can you borrow with a payday loan in Tennessee?
A lender (and related persons) may hold no more than two of your checks at once, with a total face value of no more than $500.
How much do payday loans cost in Tennessee?
The fee may not exceed 15% of the face amount of the check.
Are title loans legal in Tennessee?
Title loans (title pledge loans) are legal in Tennessee from lenders licensed by TDFI under the Title Pledge Act, Tenn. Code Ann. § 45-15-101 et seq.
How much can you get for a title loan in Tennessee?
No more than $2,500, counting other outstanding title pledge loans with the same lender on the same title.
Is there a cap on personal loan interest rates in Tennessee?
36% effective rate for industrial loan and thrift loans of $100+ (since July 2025); flex loans 24% plus fee.
Do personal loan lenders need a license in Tennessee?
Yes. Industrial loan and thrift companies must register with TDFI, and flex lenders must be licensed under the Flexible Credit Act through NMLS. A flex lender does not need a physical location in Tennessee.