Payday loans in Tennessee
Payday loans are legal in Tennessee. A licensed lender may lend up to $500 and charge no more than 15% of the amount of the advance. Every figure on this page was checked against Tennessee law on November 10, 2026.
- Status
- Legal
- Maximum loan
- $500
Tennessee payday loan rules at a glance
- Legal status
- Legal
- Maximum loan
- $500
- Loan term
- No more than 31 days
- Maximum fee
- 15% of the amount of the advance
- Loans at one time
- Maximum of $500 and two outstanding loans at a time from one lender.
- Rollovers
- No.
- Governing law
- Tenn. Code Ann. 45-17-101 et seq.
Checked against Tennessee law on November 10, 2026.
The Northlight standard
- Highest APR
- 35.99%
- Time to repay
- 3 to 36 months
- Amounts
- $100 to $5,000
Example: $1,000 over 12 months at 35.99% APR is 12 payments of $100.46, $1,205.52 in total. Rates and terms
Key points
- Payday loans are legal in Tennessee and lenders must hold a state license.
- The most you can borrow on one payday loan is $500.
- Price rule: 15% of the amount of the advance.
- Tennessee Department of Financial Institutions handles licensing questions and complaints.
On this page
Are payday loans legal in Tennessee?
Payday loans are legal in Tennessee. A licensed lender may lend up to $500 and charge no more than 15% of the amount of the advance.
The governing law is Tenn. Code Ann. 45-17-101 et seq… Tennessee Department of Financial Institutions licenses lenders and takes complaints. Check a lender’s license there before you share bank details; how to tell if a lender is legitimate lists the other checks.
Loan limits in Tennessee
- Loan size: up to $500
- Loan term: No more than 31 days
- Loans at one time: Maximum of $500 and two outstanding loans at a time from one lender.
- Rollovers: No.
What a payday loan costs in Tennessee
State law sets the price rule: 15% of the amount of the advance.
Federal law requires the lender to state the finance charge in dollars and the APR in your agreement. Read both before you sign, and set them beside the example further down this page.
A loan that meets the Northlight standard
Northlight works only with loans that carry an APR of 35.99% or less, fees included, and give you at least 3 months to repay. A single-payment payday loan under Tennessee law does not meet that standard, whatever its fee, because it falls due in one payment within weeks.
For example, $1,000 repaid over 12 months at 35.99% APR is 12 payments of $100.46, or $1,205.52 in total. The calculator prices other amounts and terms.
If you cannot repay a loan in Tennessee
Contact the lender before the due date and ask for a payment plan in writing. If a lender or collector breaks the rules, file a complaint with Tennessee Department of Financial Institutions and with the CFPB. Our guide to what happens if you don’t pay covers each step.
Lower-cost options in Tennessee
- Credit union payday alternative loans (PALs): $200 to $2,000 at no more than 28% APR.
- A payment plan with the landlord, utility or hospital you owe often costs nothing.
- Local assistance: dial 211 for rent, utility and food programs near you.
See all payday loan alternatives.
Free help in Tennessee
- 211Free, confidential referrals to local help with rent, utilities and food. Call 211.
- USA.gov: help paying billsGovernment programs for rent, energy, phone and medical bills.
- National Foundation for Credit CounselingNonprofit credit counselors who can set up a debt management plan. Call 800-388-2227.
- CFPB complaint portalFile a federal complaint about a lender or a debt collector.
Common questions
Are payday loans legal in Tennessee?
Yes. Payday loans are legal in Tennessee under Tenn. Code Ann. 45-17-101 et seq., and lenders need a state license.
How much can I borrow with a payday loan in Tennessee?
Up to $500 on a single loan.
What does a payday loan cost in Tennessee?
State law sets the price rule: 15% of the amount of the advance. The lender must give you the finance charge in dollars and the APR in writing before you sign.
Can I roll over a payday loan in Tennessee?
State rule on rollovers: No. A rollover adds a new fee without reducing what you owe.
Can I be arrested for not repaying a payday loan in Tennessee?
No. Not paying a loan is a civil matter, not a crime. A lender can still sue you in civil court, so never ignore a court summons.
Where do I complain about a lender in Tennessee?
Contact Tennessee Department of Financial Institutions. You can also file a complaint with the Consumer Financial Protection Bureau.
Does Northlight offer payday loans in Tennessee?
No. Northlight is not a lender, and the loans we work with must carry an APR of 35.99% or less and run for at least 3 months. Single-payment payday loans do not meet that standard.
See the payment before you apply
Pick an amount and a term. The calculator shows the monthly payment, the total and the cost of credit at the highest APR we allow.
Sources
Keep reading
- TexasPayday loans are legal in Texas. See the loan limits, the rules lenders must follow, where to complain, and how a loan capped at 35.99% APR compares.
- South DakotaSouth Dakota caps small loans at 36% APR, so high-cost payday loans are not offered. See what is allowed, who regulates lenders and what a loan costs.
- UtahPayday loans are legal in Utah. See the loan limits, the rules lenders must follow, where to complain, and how a loan capped at 35.99% APR compares.
- South CarolinaPayday loans are legal in South Carolina. See the loan limits, the rules lenders must follow, where to complain, and how a loan capped at 35.99% APR compares.
- VermontPayday loans are not legal in Vermont. Learn what the law says, why online offers are risky and which lower-cost options you can use instead.
- Rhode IslandPayday loans are legal in Rhode Island. See the loan limits, the rules lenders must follow, where to complain, and how a loan capped at 35.99% APR compares.