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Tennessee bad credit loans, loan laws and local help

The rules lenders follow in Tennessee, what a loan can cost and where to find free help. Checked against state sources on September 23, 2026.

Tennessee at a glance

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BadCreditMD is not a lender or broker. A lending network partner shares requests with lenders, who set their own rates and decide whether to lend. There is no fee to use our service. See disclosures.

Last updated .

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What a loan can cost in Tennessee

Examples at an illustrative rate, never above Tennessee's cap for the amount. They are not quotes.

Representative example

Amount borrowed
$500
Annual percentage rate (APR)
24%
Repayment
12 monthly payments
Payment
$47.28
Finance charge
$67.36
Total of payments
$567.36

Example: a $500 installment loan at 24% APR repaid in 12 monthly payments of $47.28 costs $567.36 in total, including a finance charge of $67.36. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

Representative example

Amount borrowed
$1,000
Annual percentage rate (APR)
24%
Repayment
12 monthly payments
Payment
$94.56
Finance charge
$134.72
Total of payments
$1,134.72

Example: a $1,000 installment loan at 24% APR repaid in 12 monthly payments of $94.56 costs $1,134.72 in total, including a finance charge of $134.72. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

Representative example

Amount borrowed
$3,000
Annual percentage rate (APR)
24%
Repayment
12 monthly payments
Payment
$283.68
Finance charge
$404.16
Total of payments
$3,404.16

Example: a $3,000 installment loan at 24% APR repaid in 12 monthly payments of $283.68 costs $3,404.16 in total, including a finance charge of $404.16. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

Resources in Tennessee

Free and low-cost help in Tennessee, each with its official link and the date we checked it.

  • Lending regulator and complaints

    Tennessee Department of Financial Institutions (TDFI) licenses lenders in Tennessee.

    Check a lender's license File a complaint

    tn.gov Checked September 23, 2026

  • Attorney general consumer protection

    Takes complaints about scams and unfair debt collection.

    Contact consumer protection

    tn.gov Checked September 23, 2026

  • 211

    Help with rent, utilities, food and other urgent bills.

    Find your local 211

    tn211.com Checked September 23, 2026

  • Legal aid

    Free civil legal help if your income is low; income limits vary.

    Find legal aid

    las.org Checked September 23, 2026

  • Nonprofit credit counseling

    Help with a budget or a debt management plan.

    Find a nonprofit counselor

    nfcc.org Checked September 23, 2026

  • Benefits portal

    Check whether you qualify for food, cash or other benefits in Tennessee.

    Check benefits

    tn.gov Checked September 23, 2026

  • Federal complaints

    Complaints about any lender, to the Consumer Financial Protection Bureau.

    Submit a complaint to the CFPB

    consumerfinance.gov Checked September 23, 2026 Available in Spanish

Cheaper options to try first

Worth checking whatever your credit: these can cost less than a high-rate loan.

  • Credit union payday alternative loans (PALs). Federal credit unions may offer small loans of up to $2,000 with terms of up to 12 months and an APR no higher than 28%, under NCUA rules (12 CFR 701.21). You usually need to be a member.
  • Ask your creditor for a payment plan. Utilities, hospitals and many lenders offer hardship or extended payment plans if you ask before you miss a payment.
  • Credit-builder loans: a small loan held in savings while you pay it off, which can help build a payment history.
  • Secured credit cards: a card backed by a deposit you make, which can help build credit when you pay on time.

The rules lenders follow in Tennessee

Each rule links to its source. How we research state rules.

Allowed in Tennessee: installment and personal loans, title loans and payday loans.

Lending law in Tennessee
ProductStatusAPR capAmountTermLicenseLaw
Installment and personal loans[1][2] Allowed 24% APR Not set by statute Not set by statute Industrial Loan and Thrift Company registration/license Tenn. Code Ann. Section 45-5-301; Title 45, Chapter 5 generally
Title loans[3][4][2] AllowedHigh-cost loan 24% APR Up to $2,500 30 days to 30 days Title Pledge license Tenn. Code Ann. Section 45-15-111; Section 45-15-115
Payday loans[5][2] AllowedHigh-cost loan Fee cap Up to $500 Up to 31 days Deferred Presentment Services license Tenn. Code Ann. Title 45, Chapter 17
Verified against the statute and regulator on September 23, 2026. Laws change; confirm with the regulator before you borrow.

Bars place each APR cap on a 0 to 400% scale; the pin marks the cap. A striped bar means the statute sets no numeric cap.

Rate, fee and license rules in Tennessee

Installment and personal loans

Rate cap
Industrial Loan and Thrift Companies Act (Tenn. Code Ann. Section 45-5-301): for loans of $100 or more, a registrant may charge interest at a maximum effective rate of 24% per annum, plus additional permitted charges (below).
Fees
Total allowable service charge up to 5% of the total loan amount; a registrant may also collect a closing fee of up to 4% of the amount financed, not to exceed $50.
License
Industrial Loan and Thrift Company registration/license under Tenn. Code Ann. Title 45, Chapter 5, Tennessee Dept. of Financial Institutions (TDFI).

Title loans

Rate cap
Title Pledge Act (Tenn. Code Ann. Section 45-15-111(a)): lender may contract for interest not to exceed an effective rate of 2% per month, plus a fee of up to 1/5 (20%) of the original principal amount (or unpaid balance on renewal). 2% per month is roughly 24% APR before the added 20% fee.
Fees
Additional fee up to 20% of original principal (or unpaid balance on renewal); lender may also pass through actual repossession costs charged by a third-party repossession company/attorney/contractor.
License
Title Pledge license under Tenn. Code Ann. Title 45, Chapter 15, TDFI (not transferable or assignable).

Payday loans

Rate cap
Deferred Presentment Services Act (Tenn. Code Ann. Title 45, Chapter 17) caps the fee instead at up to 15% of the face value of the check.
Fees
Fee capped at 15% of the check's total value.
License
Deferred Presentment Services license under Tenn. Code Ann. Title 45, Chapter 17, TDFI; licensee needs $25,000 minimum net worth and internet/phone/fax lending is separately covered by the licensing requirement.

Rent and jobs in Tennessee

Typical rent and the jobless rate, to weigh before a loan payment.

Rent and unemployment in Tennessee
MeasureValueYear
Fair market rent, 2 bedroom (monthly)[6]$1,363FY2026
Unemployment rate[7]3.4%2026-08

Guides for Tennessee borrowers

By credit score

By amount

Articles about Tennessee

Check your options in Tennessee

Check your optionsYour request goes to a lending network partner, who shares it with lenders. Lenders set their own rates and decide whether to lend. There is no fee to use our service.

Tennessee questions

Does Tennessee law allow payday loans?

Tennessee law allows payday loans. State law caps the fee rather than the APR. Source: Tenn. Code Ann. Title 45, Chapter 17.

What is the most a lender can charge in Tennessee?

By loan type in Tennessee: Installment and personal loans: 24% APR. Title loans: 24% APR. Payday loans: Fee cap.

Where can I file a complaint about a lender in Tennessee?

You can file a complaint with Tennessee Department of Financial Institutions (TDFI), and you can also submit one to the Consumer Financial Protection Bureau. Both links are under Resources in Tennessee on this page.

How do I check a lender's license in Tennessee?

Tennessee Department of Financial Institutions (TDFI) licenses lenders in Tennessee. Use the license link under Resources in Tennessee on this page to check a lender before you share your information.

Is there free help paying bills in Tennessee?

Yes. Resources in Tennessee on this page lists free help, including 211, legal aid, nonprofit credit counseling and benefits portal.

Nearby states

Sources

  1. Justia. Tenn. Code Ann. Section 45-5-301. Retrieved September 23, 2026.
  2. tn.gov. Tennessee Department of Financial Institutions (TDFI). Retrieved September 23, 2026.
  3. Justia. Tenn. Code Ann. Section 45-15-111. Retrieved September 23, 2026.
  4. tn.gov/tdfi/mortgage-consumer-lending/tpl/tdfi-tpl-faq.html. Retrieved September 23, 2026.
  5. tn.gov. Tenn. Code Ann. Title 45, Chapter 17. Retrieved September 23, 2026.
  6. National Low Income Housing Coalition. Out of Reach 2026: Tennessee. Retrieved September 23, 2026.
  7. U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.

Important disclosures

APRs vary by lender and state in Tennessee. Each lender sets its own rates and terms and must show you the APR before you sign.

  • BadCreditMD is not a lender or broker and does not make loans or credit decisions. When you submit a request, a lending network partner shares it with third-party lenders, and those lenders or the partner may pay us a fee for each referral. The lenders decide whether to offer you a loan.
  • There is no fee to use BadCreditMD. Lenders or our lending network partner may pay us.
  • Lenders set their own rates, fees and terms. Offers depend on your credit, income, state of residence and each lender's criteria.
  • Our service is not available in all states, and not every loan type is available in every state.
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  • Submitting a request does not mean you will be approved or funded, or that you will receive any particular amount or rate.
  • Short-term loans are costly and are not a long-term financial solution. Borrow only what you can repay on time.
  • BadCreditMD publishes general information about loans and state rules. It is not legal or financial advice.
  • BadCreditMD is operated by BadCreditMD, LLC, 30 N Gould St Ste N, Sheridan, WY 82801. Contact: pr@badcreditmd.com. Full details are on our disclosures page and disclaimer.
  • Questions about a lender licensed in Tennessee? Contact the Tennessee Department of Financial Institutions (TDFI) or file a state complaint.
  • You can submit a complaint about any lender to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.