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States Tennessee Payday Loans

Payday Loans in Tennessee

Page last reviewed: October 28, 2026 · Reviewed for accuracy by Peter Kizza

Payday loans are legal in Tennessee. A licensed lender can hold your check for up to 31 days, and the check, fee included, can't top $500, so you get at most $425 in cash for a $75 fee.

Check Your Options
Borrow Up to $425 in cash on a check of no more than $500
Fee cap 15% of the check, or $17.65 for each $100 you get
Example $300 for 14 days: a $352.94 check (~460% APR)
Limits 3 loans and $500 in checks at once; no renewals
You need ID, proof of income and a checking account for the check or debit
Fee on Each Amount How Many Loans

LendUp isn't a lender. We pass your request to lenders in our network; offers aren't guaranteed, and we may earn compensation if a loan is funded.

The 15% Fee on Every Tennessee Payday Check

CashFee (check)APR, 14 / 31 days
$100$17.65 ($117.65)~460% / ~208%
$200$35.29 ($235.29)~460% / ~208%
$300$52.94 ($352.94)~460% / ~208%
$425$75.00 ($500.00)~460% / ~208%

Worked out from Tennessee law, not offers from lenders in our network; a lender can charge less.

The 15% is taken from the face of the check, which includes the fee, so it works out to $17.65 for each $100 you actually receive. Because the fee doesn't change with the term, a 14-day loan carries more than twice the APR of a 31-day one.

Need more than $425, or monthly payments? Tennessee installment loans run up to 36% a year.

Three Checks and $500: Tennessee's Outstanding-Loan Limits

Tennessee caps what you owe across lenders, not just each loan:

  • Across all lenders. No more than three payday loans at once, with checks totaling $500 or less.
  • With one lender. No more than two of your checks outstanding, again within $500.
  • No renewals. A loan can't be renewed or folded into a new payday loan. One made that way is void and unenforceable.
  • Online counts. A "check" includes an electronic payment authorization, so online loans follow the same caps.

When a Payment Bounces: What a Lender Can and Can't Do

  • The lender can sue to collect, but only the face amount of the check plus court costs.
  • No extra handling fees and no attorney's fees on a returned check.
  • No criminal case: you can't be convicted under Tennessee's worthless check law for a payday check.
  • Your contract can't send a dispute to another state's courts or law, or waive any part of the Act.

How Much Payday Lending Tennessee Sees

TDFI's 2025 annual report counted 937,400 payday transactions in 2024, worth $269,351,362 in all, so the average was about $287. The number of licensed providers fell from 553 to 496 in the year to June 30, 2025.

Before You Hand Over a Check: Three Steps

  1. Count your open payday loans: you need fewer than three, and room under $500 in total checks.
  2. Submit one request through LendUp. Lenders in our network review it, and any offer shows the APR, payments and total cost before you sign.
  3. Before you sign, check that the fee is no more than 15% of the check and the due date is no more than 31 days away.
Check Your Options

Is This Payday Lender Licensed by TDFI?

Official lookup tool NMLS Consumer Access
  1. Search NMLS Consumer Access for the lender's legal name or NMLS ID; TDFI licenses payday lenders through it.
  2. Open the Tennessee record and look for an active deferred presentment license.
  3. Each location needs its own license, so match the address to the store or website you're using.

An online lender that gets you to borrow while you're in Tennessee needs this license too. Complaints: TDFI at 1-800-778-4215 or online.

Common Questions

Are payday loans legal in Tennessee?

Yes. Tennessee calls them deferred presentment services, and lenders need a TDFI license, whether they lend in a store or online.

How much can you borrow with a payday loan in Tennessee?

Up to $425 in cash. The check, fee included, can't be more than $500, and the fee can be up to 15% of it.

What disqualifies you from getting a payday loan in Tennessee?

Each lender sets its own standards. Under Tennessee law, a new loan isn't allowed if you already have three open, or if it would take your outstanding checks past $500.

Can a Tennessee payday loan be rolled over?

No. A payday loan can't be renewed or consolidated into a new one, and a loan made that way is void.

Can you go to jail for not paying a payday loan in Tennessee?

No. Tennessee law says no one who gives a payday lender a personal check can be convicted under the worthless check law. The lender can sue for the check amount and court costs.

How much does a $300 payday loan cost in Tennessee?

At most $52.94, written as a $352.94 check. Over 14 days, that's about 460% APR.

Official Sources

General information, not legal advice. Facts on this page were checked against these sources on October 28, 2026.

← Tennessee loan rules