Installment Loans in Tennessee
Page last reviewed: March 31, 2026 · Reviewed for accuracy by LendUp
Are installment loans legal in Tennessee? Yes - Tennessee registers Industrial Loan and Thrift (ILT) companies to make consumer installment loans.
Unique charge structure: Tennessee ILT lenders use a two-part pricing model - an upfront acquisition charge plus a monthly installment handling charge - rather than a single APR. Ask the lender to show you both components and the total you'll repay, not just the monthly payment.
How to verify: The Tennessee Department of Financial Institutions (TDFI) registers ILT companies through NMLS Consumer Access. Call (615) 741-2236 to confirm a lender's registration. Full steps below.
To qualify:
- Credit: Most installment lenders review your credit, but approval isn't based solely on your score. Ask what type of check they'll run before you authorize it.
- Basics: You'll typically need to be 18+, have a government-issued ID, verifiable income, and an active checking account for deposit and repayment.
- Military households: If you or your dependent are covered by the Military Lending Act, your total loan cost is capped at 36% per year (called the Military Annual Percentage Rate), which may limit available offers.
LendUp isn't a lender - we connect you with providers. Offers aren't guaranteed, and we may earn compensation if a loan is funded.
How to Apply
Steps
- Submit one request through LendUp or contact a registered lender directly.
- Gather what you'll need: government-issued ID, proof of income (pay stubs, benefit letters, or bank statements), and your bank account details for deposit and repayment.
- Review the offer: confirm the APR, the acquisition charge, the monthly handling charge, the full payment schedule, and the total amount you'll repay over the life of the loan.
- Make sure the product is an installment loan - not a deferred presentment (payday), flexible credit, or title pledge product - unless that's what you specifically want.
What to expect
- Credit check: You may see a soft check (no score impact) for prequalification and a hard check (small score impact) if you accept. Ask before you agree.
- Break out each charge: Ask the lender to itemize the acquisition charge and the monthly handling charge separately, alongside the APR. This lets you compare Tennessee offers against each other and against offers from lenders in other states.
- Total cost vs. monthly payment: The monthly payment alone doesn't tell you the full cost - the acquisition charge adds to it upfront. Ask for the total of all payments over the life of the loan.
- Automatic payments: Most installment loans use automatic withdrawals. If your paydays don't match the due dates, ask whether the lender can adjust the schedule to avoid overdraft fees.
Verify an Installment Lender in Tennessee
Before sharing your Social Security number or bank details, confirm the lender holds an active Industrial Loan and Thrift registration from TDFI.
- Go to NMLS Consumer Access. Search by the company's NMLS number or legal name.
- Confirm Tennessee is listed under State Licenses/Registrations with an Industrial Loan and Thrift registration and that the lender is authorized to conduct business.
- Confirm the company name on the registration matches the name on your loan documents.
- If you can't find the lender, call TDFI at (615) 741-2236 or email [email protected] before you proceed.
If a lender can't be verified, stop and contact TDFI before paying or sharing more information. Each ILT office location must be separately registered - if the lender operates from a location that isn't registered, that's a red flag.
To file a complaint, visit the TDFI complaint page or call (615) 741-2236. You can also file with the CFPB.
LendUp works to present offers from providers that meet our marketplace requirements, but you should always verify the lender's current Tennessee registration before accepting any offer.
Before You Sign
Your rights in Tennessee
- Charges are capped by loan size: Tennessee law sets maximum acquisition charges and monthly handling charges in tiers based on the loan amount. If any charge on your loan seems unusually high, ask the lender to explain how it fits within the state limits.
- No criminal prosecution for payday default: If you also have a deferred presentment (payday) loan, Tennessee law protects you from criminal prosecution for a worthless check in that context. If any lender or collector threatens criminal action, report it to TDFI.
- Collection costs must be reasonable: A lender may require payment of reasonable and actual attorney's fees and costs incurred in collection, but charges beyond what's authorized by statute are not permitted. Ask for any collection costs in writing.
Walk away if
- An upfront fee is required before you receive any money - the acquisition charge should be part of the loan, not an out-of-pocket cost before funding.
- The lender shows only the monthly payment and won't state the total you'll repay in writing.
- You're pressured to sign immediately or told you can't review the agreement on your own time.
- The lender can't be found in NMLS Consumer Access with an active Tennessee ILT registration.
- The lender won't break out the acquisition charge and monthly handling charge separately.
- The lender describes the product as a "payday loan" or "cash advance" when you asked for an installment loan - these are different products with different costs and terms.
If payments look tight, review red flags on scams and safety.
Installment Loan Questions in Tennessee
What's the difference between an installment loan and a payday loan in Tennessee?
Both are legal in Tennessee, but they're different products under different laws. An installment loan through a registered ILT company is repaid over months in scheduled payments. A deferred presentment (payday) loan is a short-term product of up to $500, due within 31 days, with a fee of up to 15% of the check amount. Tennessee also has "flexible credit" companies that offer yet another product type. Always confirm which product you're being offered and compare the total cost before signing.
How does Tennessee's charge structure work?
Tennessee ILT lenders use a two-part pricing model: an upfront acquisition charge (a percentage of the principal) plus a monthly installment account handling charge that varies by loan amount tier. Both are capped by state law. This structure can make it harder to compare with a simple APR from another state - ask the lender for both the itemized charges and the APR so you can compare meaningfully. For the specific tier breakdowns, see our rates and fees page.
What happens if I miss a payment?
Your contract specifies the late-charge and default terms. Tennessee law allows lenders to charge reasonable and actual attorney's fees and collection costs. If you can't repay, see what to do if you can't repay and contact your lender right away to discuss options.
How do I verify a lender is registered?
Use NMLS Consumer Access and search by the company's NMLS number or legal name. Confirm Tennessee is listed with an Industrial Loan and Thrift registration. Each office location must be separately registered. If you can't find the lender, call TDFI at (615) 741-2236.
Can a lender threaten arrest if I don't pay?
No. Missed loan payments are a civil matter. For deferred presentment (payday) loans specifically, Tennessee law provides that borrowers cannot be convicted under the state's criminal worthless check law. If any lender or collector threatens arrest, report it to TDFI and the CFPB.
Where do I file a complaint?
Visit the TDFI complaint page, call (615) 741-2236, or email [email protected]. TDFI investigates complaints against registered lenders. You can also file with the CFPB.
What is a "flexible credit" company in Tennessee?
A flexible credit company is a separate license type regulated by TDFI - it's not the same as an ILT installment lender. Flexible credit products are typically open-end lines of credit rather than closed-end installment loans, and they can carry very high costs when expressed as an APR. If a lender offers you a "line of credit" or "flexible credit" product instead of a fixed installment loan, ask for the APR and total cost before accepting. These products are governed by different rules than ILT installment loans.
Can the acquisition charge be added to my loan balance?
Yes. Tennessee law allows ILT lenders to include the maximum maintenance fee for the term of the loan in the face amount of the note - meaning you don't pay it out of pocket upfront, but it increases the total you're borrowing. However, the lender cannot charge interest or other loan charges on that added amount. Ask the lender to show you exactly how the acquisition charge and maintenance fee affect your total balance and payment schedule.
Official Sources and Update Notes
This page provides general information, not legal advice. Rules can change; confirm current requirements with the Tennessee regulator before acting.
Tennessee regulator: Department of Financial Institutions (TDFI)
ILT company information: TDFI - Industrial Loan & Thrift
ILT statute: Tennessee Code Title 45, Chapter 5
License verification: NMLS Consumer Access
Consumer hotline: (615) 741-2236 · Email: [email protected]
File a complaint: TDFI - File a Complaint or CFPB
For statewide rules and context, go back to the Tennessee lending guide or browse all states in the state directory.