Yes. Payday loans are legal in Tennessee, and lenders must follow Tenn. Code Ann. § 45-17-112.
Payday loan rules in Tennessee at a glance
| Payday loans | Legal, from licensed lenders |
|---|---|
| Fee or rate cap | 460% (computed) |
| Largest loan | $500 |
| Loan term | Up to 31 days |
| Rollovers and renewals | Not allowed |
| Right to cancel | No right to cancel in state law |
| Arrest and criminal charges | Lenders may not use criminal charges to collect |
| Lender license | Required |
| Regulator | Tennessee Department of Financial Institutions |
| Statute | Tenn. Code Ann. § 45-17-112 |
Source: Tenn. Code Ann. § 45-17-112 (read the law). We last checked it against the statute on October 3, 2026. See payday loan laws in every state.
What a payday loan costs in Tennessee
Under Tennessee's limits, borrowing $85 for 14 days costs $15 in fees, so you repay $100. That works out to 460% APR. Your offer may differ.
| Loan | Term | Fees | Total repaid | APR |
|---|---|---|---|---|
| $85 | 14 days | $15 | $100 | 460% |
| $255 | 14 days | $45 | $300 | 460% |
| $425 | 14 days | $75 | $500 | 460% |
A payday loan is usually repaid in one payment on your next payday, so a fee that looks small is a high APR. Compare it with the APR on any other option before you sign.
If you fall behind
Tennessee doesn't let a lender roll a payday loan over into a new one for another fee. Lenders may not use criminal charges to collect a payday loan in Tennessee.
A federal rule also protects your bank account: after two payment attempts in a row fail, the lender needs your new permission before it tries again (CFPB payday rule).
How to check a lender in Tennessee
Payday lenders in Tennessee need a state license. Look the lender up in the official license search before you sign. Complaints go to the Tennessee Department of Financial Institutions. Lenditup does not check lender licenses for you (see how we verify).
Looking for a loan in Tennessee?
A payday loan is due in one payment within weeks. If you would rather spread the cost, compare a personal installment loan first. If a payday loan is still the right fit, you can send one request and see what lenders and lending marketplaces in our network offer.
Lenditup is not a lender. Sending a request does not mean you will be approved; each lender sets its own rates and terms within Tennessee law.
Payday loan questions for Tennessee
01What is the most a payday lender can charge in Tennessee?
02How much can I borrow with a payday loan in Tennessee?
03How long can a payday loan last in Tennessee?
04Can I roll over a payday loan in Tennessee?
05How do I check that a payday lender is licensed in Tennessee?
06Is Lenditup a payday lender in Tennessee?
Other loan rules in Tennessee
Car title loans have their own law: see title loan rules in Tennessee. To compare payday rules across states, use the state payday loan law table, or read how payday loans work.