Tennessee Payday Loan Laws, Explained
Last updated: July 20, 2026
Key takeaway
Key takeaway: Tennessee allows payday lending, but keeps it tightly bounded — a hard dollar cap, a percentage-based fee limit, a fixed term, and rules that stop the loan from rolling over indefinitely.
The Deferred Presentment Services Act
Since 2010, Tennessee's Deferred Presentment Services Act has capped a single payday loan at $500 per lender per borrower, with the finance charge limited to 15% of the total check amount — roughly $17.65 per $100 borrowed. The law is codified in Tennessee Code Title 45, Chapter 17, and enforced by the Tennessee Department of Financial Institutions.
Term Length and Rollovers
A Tennessee payday loan runs for a maximum of 31 days, and once it matures, the borrower has to pay it in full before taking out a new one — the law doesn't allow rolling an existing balance into a new loan. A single lender can hold at most two outstanding checks from the same borrower at once.
Licensing and Oversight
Every deferred presentment provider operating in Tennessee has to be licensed through the state's Department of Financial Institutions, which also investigates consumer complaints — worth checking before you provide personal or banking information to any lender advertising in the state.
| Factor | Tennessee Rule |
|---|---|
| Maximum loan amount | $500 per lender |
| Fee cap | 15% of check face value |
| Loan term | 31 days maximum |
| Rollovers | Not permitted |
Because Tennessee limits both loan size and fee percentage, comparing total dollar cost — not just the advertised fee — is the most useful way to evaluate offers here.
Sources: NCSL — Payday Lending State Statutes · CFPB — Payday Loans
Tennessee Payday Loan FAQ
Are payday loans legal in Tennessee?
Yes. Tennessee caps payday loans at $500 per lender, with a 15% fee.
How much can you borrow with a payday loan in Tennessee?
Up to $500 per lender, on a term of up to 31 days.
Can you roll over a payday loan in Tennessee?
No. Rollovers are not permitted.
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