Tennessee Payday & Small-Dollar Loan Laws
Payday loans legal
Tennessee caps deferred presentment loans at $500 with 15% fees plus a $5 verification fee. Flex loans up to $4,000 carry up to 24% per year plus daily fees.
Tennessee Lending Overview
Tennessee state law permits deferred presentment transactions, commonly known as payday loans, with a maximum principal amount of $500. These short-term agreements carry a 31-day limit and typically reach an annual percentage rate of approximately 459%. Lenders are allowed to charge a 15% fee on the check amount plus a $5 state verification fee. Residents also have access to flex loans, which provide up to $4,000. These lines of credit involve a 24% annual interest rate combined with daily customary fees.
Consumers in the state often utilize these high-interest products for emergency expenses or immediate cash needs between pay periods. While payday options cover smaller amounts, installment and personal loans serve as alternatives for larger funding requirements. Borrowers frequently evaluate these different lending structures based on the specific caps and fee schedules established by state regulations. Residents typically balance the speed of short-term payday services against the higher borrowing limits available through flex loan accounts.
Maximum loan amount
$500
Maximum loan term
31 days max
Maximum APR / finance charge
~459% APR
Rollover / renewal rule
No rollovers permitted
Cooling-off period
1 day after 3rd consecutive loan
Governing statute
Tenn. Code Ann. § 45-17
Who regulates lenders in Tennessee
Tennessee Department of Financial Institutions
File a complaint with the regulator above if a lender violates state law. You can also file with the CFPB.
Tennessee loan options
Other state loan laws
Reviewed by Darnell Pierce, MBA. Last reviewed January 2026. This page is informational, not legal advice — verify current rules with the state regulator before borrowing.