State reference · TN
Tennessee lending rules
Tennessee has 344 Census places covered on Paydayloaning, with a combined estimated population of 3,612,104. Payday and small-loan terms in Tennessee are set by licensed lenders under state law; the sourced rules below apply to every borrower in the state.
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The verdict
Licensed
Source: Tennessee Department of Financial Institutions (TDFI) · as of 2026-09-16
- Maximum rate
- 10.75% per annum (maximum effective formula rate for written contracts, announced September 15, 2026)
- Tennessee Department of Financial Institutions (TDFI)
- Licensing
- TDFI Compliance Division licenses industrial loan & thrift companies, deferred presentment companies…
- Tennessee Department of Financial Institutions (TDFI)
- Regulator
- Tennessee Department of Financial Institutions (TDFI)
- Tennessee Department of Financial Institutions (TDFI)
Rules are quoted from the cited sources. How payday lending is regulated.
Key rules for borrowers in Tennessee
Quoted from the statute, regulator or agency named in each row.
| Rule | Detail | Source |
|---|---|---|
| Maximum legal interest rate (usury cap) | 10.75% per annum (maximum effective formula rate for written contracts, announced September 15, 2026) Source says: the maximum effective formula rate of interest in Tennessee is 10.75 percent per annum |
Tennessee Department of Financial Institutions (TDFI) as of 2026-09-16 |
| Payday lending status | Licensed; deferred presentment services (payday) lenders must obtain a TDFI license, including internet lenders (Tenn. Code Ann. § 45-17-103) Source says: deferred presentment services in this state through the use of the internet, facsimile, telephone, or other means without having first obtained a license |
Tennessee Department of Financial Institutions (TDFI) as of 2026-09-16 |
| Small-loan / installment lender licensing | TDFI Compliance Division licenses industrial loan & thrift companies, deferred presentment companies, flexible credit companies, and other consumer lenders Source says: The Compliance Division is responsible for the licensing and regulatory supervision of the following types of financial institutions operating in Tennessee |
Tennessee Department of Financial Institutions (TDFI) as of 2026-09-16 |
| State lending regulator | Tennessee Department of Financial Institutions (TDFI) Source says: The Department regulates banks, credit unions, trust companies, business and industrial development corporations, industrial loan and thrift companies |
Tennessee Department of Financial Institutions (TDFI) as of 2026-09-16 |
Cities in Tennessee
All Tennessee citiesWe cover 344 Census places in Tennessee.
Advertising disclosure: Paydayloaning may receive a referral fee if you apply through the link above. That fee does not change the rate you are offered, and it does not change our content. We are not a lender. The lowest rates are only available to the most qualified applicants. Read the full disclosure.