Loans in Tennessee: Payday and Installment Options
Page last reviewed: October 28, 2026 · Reviewed for accuracy by Betty Walsh
Yes, you can borrow in Tennessee from four kinds of licensed lender: payday loans up to a $500 check, installment loans at up to 36% a year, flex credit lines of up to $4,000, and car title pledges.
| Payday loan | A check of up to $500, fee included: at most $425 in cash |
| Installment | 36% a year from industrial loan companies, plus capped fees |
| Flex loan | A credit line of up to $4,000: 24% plus a fee of 0.7% a day |
| Example | $1,000 over 12 months at 36%: $100.46 a month, before fees |
| You need | ID, proof of income and a bank account |
What $300 to $1,000 Costs Under Tennessee's Caps
The most a Tennessee-licensed lender can charge for each kind of loan:
| Loan | Cost at the cap | APR |
|---|---|---|
| $300 payday, 14 days | $52.94 fee | ~460% |
| $1,000 installment, 12 mo | $355.52 in charges | ~66% |
| $1,000 flex, 30 days | $229.73 | ~279.5% |
| $1,000 title, 30 days | $220.00 | ~268% |
Worked out from Tennessee law, not offers from lenders in our network; a lender can charge less. The installment row takes a 5% service charge and a $40 closing fee from the loan and adds $5 a month. The flex row assumes the $1,000 balance stays the same all month.
The payday fee is a flat share of the check, so the APR falls the longer the term: about 208% over the full 31 days. See Tennessee payday loan rules for every amount up to $425, and Tennessee installment loans for monthly payments up to $5,000.
Four Tennessee Loan Licenses and What Each One Allows
| License | How it works | Price cap |
|---|---|---|
| Deferred presentment | $500 check, 31 days max | 15% of the check |
| Industrial loan | Monthly installments | 36% a year + fees |
| Flexible credit | Credit line up to $4,000 | 24% + 0.7% a day |
| Title pledge | 30-day terms, $2,500 a title | 2% a month + fee |
TDFI counted 937,400 payday transactions in 2024, averaging $287, and 195,380 new flex loan agreements worth $273,971,821. On June 30, 2025, it had 1,159 industrial loan and thrift registrants on file.
A flex loan is an open-end line of credit, not an installment loan: you draw what you need, and each month you pay the charges plus at least 3% of the principal. You can have only one flex plan at a time, and you can cancel any draw by the next business day.
Car Title Pledges: 30-Day Terms and a $2,500 Ceiling
A title pledge lender holds your car title for a 30-day agreement that can renew in 30-day periods. It can charge 2% interest a month plus a fee of up to one-fifth of the principal, or $220.00 on $1,000 for a single month. From the third renewal, each renewal must cut the principal by 5%.
In 2024, Tennessee title lenders made 34,445 new agreements and reported 1,761 repossessions to TDFI.
Bad Credit, Online Lenders and Tennessee Law
Tennessee law doesn't set a minimum credit score; each lender decides, and approval isn't guaranteed. What the law does is cap the price a licensed lender can charge once it says yes, whatever your score.
- An online payday or flex lender needs a Tennessee license if it gets you, while you're in Tennessee, to take out a loan.
- Each location a lender does business from needs its own license or registration.
- A payday contract can't name another state's law, another state's courts or a fixed venue, or waive the Act.
Sending a Tennessee Loan Request in Three Steps
- Pick the loan: $425 or less for a month or less suits a payday loan; more, or monthly payments, means an installment loan.
- Submit one request through LendUp. Lenders in our network review it, and any offer shows the APR, payments and total cost before you sign.
- Before signing, find the lender's Tennessee license in NMLS, as shown below.
Matching Your Lender to a TDFI License in NMLS
- Search NMLS Consumer Access by the company's legal name or NMLS ID. TDFI uses it for payday, flex and industrial loan lenders.
- Open the Tennessee record and look for the license that fits your loan: deferred presentment, flexible credit or industrial loan and thrift.
- Check that it's active and that the name matches your offer.
Questions: TDFI at (615) 741-2236. Complaints: 1-800-778-4215, or TDFI's complaint form.
Common Questions
Can I get a loan with bad credit in Tennessee?
You can apply. Tennessee law sets no minimum credit score, and each lender makes its own decision. If a Tennessee-licensed lender approves you, its price is still capped: 36% a year plus limited fees on an industrial installment loan, for example.
Where can I borrow money in Tennessee?
From lenders licensed or registered with TDFI: payday (deferred presentment) lenders, industrial loan and thrift companies for installment loans, flexible credit lenders and title pledge lenders. National banks and federal credit unions answer to federal regulators instead.
What is the maximum interest rate on a loan in Tennessee?
It depends on the license. Industrial loan companies can charge up to 36% a year since July 1, 2025. Flex loans allow 24% plus a daily fee of 0.7%, about 279.5% a year in all. A payday fee can be up to 15% of the check.
Are flex loans legal in Tennessee?
Yes. Since 2015, lenders licensed under the Flexible Credit Act can offer open-end credit lines of up to $4,000, at 24% a year plus a daily customary fee of up to 0.7% of the average balance.
How many payday loans can I have in Tennessee?
Up to three at once, with a combined check value of no more than $500. A single lender can hold no more than two of your checks.
How do I file a complaint against a Tennessee lender?
Use TDFI's online complaint form, call 1-800-778-4215 for a paper form, or email [email protected].
Official Sources
General information, not legal advice. Facts on this page were checked against these sources on October 28, 2026.
- TDFI - Consumer notice on the Deferred Presentment Services Act, § 45-17-112
- TDFI - Deferred presentment licensing, Tenn. Code Ann. § 45-17-103
- Tenn. Pub. Ch. 205 (2011) - Online payday lending and electronic checks
- Tenn. Pub. Ch. 70 (2025) - 36% rate cap and 12.5% acquisition charge, §§ 45-5-301, -403
- Tenn. Pub. Ch. 91 (2021) - Service charge, maintenance and closing fees, § 45-5-403
- Tenn. Pub. Ch. 534 (2012) - Acquisition and handling charges, § 45-5-403(b)
- Tenn. Pub. Ch. 969 (2014) - Flexible Credit Act, § 45-12
- TDFI - Flexible credit FAQs
- TDFI - Title pledge lending FAQs
- TDFI - 2025 annual report (2024 lending data)
- TDFI - Industrial loan and thrift registration, § 45-5-103
- TDFI - Regulated entities search
- TDFI - File a consumer complaint
- TDFI - Consumer resources and other regulators
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