Tennessee
House Approves Tennessee Payday Loan Bill
New regulations for Tennessee payday loan lenders were advanced by a House panel today.
Section
Payday Loans in Tennessee
Payday Loan Laws in Tennessee (2026)
Yes — payday loans are legal in Tennessee as “deferred presentment” transactions. The fee is capped at 15% of the check, the term at 31 days, and you may not owe more than $500 at once. Unusually, Tennessee has no statewide database — the $500 cap relies on your written statement — which makes it easy to stack loans across lenders. TDFI oversees lenders.
| Status | Legal — licensed & regulated |
|---|---|
| Maximum owed | $500 across all your outstanding checks (max 2 per lender) |
| Maximum fee | 15% of the face amount of the check |
| Cash you receive | Check minus the fee (a $500 check yields about $425) |
| Typical APR | ≈459% on a 14-day loan |
| Loan term | Up to 31 days |
| Rollovers | Prohibited — no renewals or consolidations |
| Statewide database | No — the $500 limit relies on borrower self-attestation |
| Regulator | Department of Financial Institutions (TDFI) |
| Law | Deferred Presentment Services Act (Tenn. Code Ann. 45-17-101+) |
What a payday loan costs in Tennessee
Tennessee's 15% fee comes off the check: write a $500 check and the lender keeps $75, handing you about $425, then collects the full $500 on payday. On a two-week loan that is roughly a 459% APR.
| Check you write | Fee (15%) | Cash you receive |
|---|---|---|
| $100 | $15 | $85 |
| $300 | $45 | $255 |
| $500 | $75 | $425 |
Your rights as a borrower in Tennessee
- You may not have more than $500 in payday loans outstanding, and no more than two checks with any one lender.
- Rollovers are banned — each loan must be its own transaction, repaid in full before another.
- Tennessee has no real-time database (unlike Florida or Alabama), so the $500 cap depends on your written statement — making it easy, but risky, to stack loans across lenders.
- The term can't exceed 31 days, and the fee is capped at 15% of the check.
Problem with a lender? File a complaint
Payday (deferred presentment) lenders in Tennessee are licensed by TDFI. To report a violation or an illegal lender, use the online complaint form.
Alternatives to a payday loan
Before borrowing, compare a credit-union payday-alternative loan, an employer paycheck advance, or a payment plan with the biller. See our guide to payday loans and alternatives.
Your debt rights in Tennessee
A lender can garnish wages in Tennessee only after it sues and wins a court judgment, and federal law then caps how much can be taken. Tennessee does not run a statewide payday-loan database, so limits on how many loans you can hold are harder to track from lender to lender. Your rights when you cannot repay are set by a mix of federal and state law — these guides explain how they work:
- Can a payday lender sue you?
- Can payday loans garnish your wages?
- Do payday loans affect your credit?
- Payday loan statute of limitations
- How many payday loans can you have?
- How to get out of payday loan debt
Disclaimer: general information, not legal or financial advice. Laws change — verify the current rules with the Tennessee Department of Financial Institutions (TDFI) before borrowing. Last reviewed 2026.
Sources
Frequently asked
Are payday loans legal in Tennessee?
Yes. They are legal as “deferred presentment” transactions under Tenn. Code Ann. 45-17, overseen by the Department of Financial Institutions.
How much can you borrow with a payday loan in Tennessee?
You may not owe more than $500 at one time, with no more than two checks per lender. After the 15% fee, a $500 check yields about $425.
What is the most a Tennessee payday lender can charge?
A fee of up to 15% of the check's face amount — about a 459% APR on a two-week loan.
Does Tennessee track payday loans in a database?
No. Tennessee has no statewide real-time database; the $500 limit relies on the borrower's written attestation, so loans can be stacked across lenders.
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