Tennessee Payday Loans

Payday loans can be a good way to handle an unexpected expense, but you’ll want to know the laws of Tennessee before you borrow. Our page has everything laid out simply so you don’t have to go searching for what a lender should be charging you.

How does Payday lending work in Tennessee?

Payday loans are governed by the Tennessee Code Ann. 45-17-101 et seq.

There are limits to how much you can legally borrow. If you apply online, the maximum is $425. If you apply in-store and receive a check, the maximum increases to $500. No matter how much you borrow, loan terms are limited to 31 days and lenders may charge no more than 15% of the loan in the form of fees.

You may have up to three outstanding loans at a time provided they total less than $500.

How much does a Payday Loan cost in Tennessee?

Every loan costs money to take out, but Tennessee law caps how much a lender can charge you. Be sure your lender is charging you legal fees.

  • APR and finance charge. A 14-day, $100 loan has an APR of 459% and costs $17.65
  • Collection fees. Payday lenders can’t charge a fee for collecting unpaid or defaulted loans.
  • Court costs. You may be required to pay court costs if you default on a payday loan.
  • Prepayment fees. There are no additional fees for paying off a loan before its due date.

Should I consider anything else before taking out a Payday Loan?

Yes. Payday loans are high-cost options that should be used as a last resort. Before you borrow, you should always try to save up as much as you can in order to afford what you’re looking to pay for. Asking family and friends can be an awkward conversation, but it is best to ask before resorting to anything else. However, if you are in need of short term lending options, you can register for a payday loan.

Get Started!