Installment loans are legal in Tennessee. See how the state regulates them, what they cost and how to compare licensed lenders online or near you.
Tennessee Installment Loan Regulations
Here's what fees you can expect when obtaining online installment loans in Tennessee:
| Installment lending status in Tennessee: | Legal |
|---|---|
| Maximum loan amount in Tennessee: | Not specified |
| APR: | Up to 36% a year on loans of $100 or more; service charge 5%, a late charge (5 cents per $1 of the installment, or $15) and a closing fee of up to 4% (maximum $50); an alternative schedule for loans of $100 to $2,000 uses a 12.5% acquisition charge plus $12 to $32 a month (Tenn. Code 45-5) |
| Minimum loan term: | Not specified |
| Maximum loan term: | 24 months (up to $300), 36 months (over $300 to under $1,000), longer for larger loans |
| Prepayment penalty: | Unearned interest is refunded by the Rule of 78 or the actuarial method |
| State Regulator: | Tennessee Department of Financial Institutions |
Table Data Updated: October 2026.
Above you can see what fees you can expect when obtaining online installment loans in Tennessee.
Compare Installment Lenders in Tennessee
Installment Loans In Tennessee Near Me
Search 192 installment loan locations in Tennessee by city or ZIP, or use your location to see the nearest first.
Biggest Cities for Installment Loans in Tennessee
Are Installment Loans Legal in Tennessee?
Yes. Installment loans are legal in Tennessee and regulated by the Tennessee Department of Financial Institutions. Payday loans are also legal in Tennessee, under their own state limits; see our payday loan guide for Tennessee to compare the two. The limits in the table below come from state law, so check them before you borrow.
Always check the license
Before you apply, confirm the lender is licensed in Tennessee on the Tennessee Department of Financial Institutions website. Ask for the APR, the number of payments and the total you will repay in writing.
How Installment Loans Work in Tennessee
- You receive a set amount and agree on the number of payments.
- Every payment is the same size, due on a fixed schedule.
- The APR and fees decide the total you repay.
- Paying off early may or may not save interest, so ask the lender in writing.
Who Can Get an Installment Loan in Tennessee?
Before you apply, have these ready:
- Proof of regular income
- A checking account in your name
- A government-issued ID
- Your phone number and email
- You must be old enough to sign a contract in Tennessee
How to Apply for an Installment Loan in Tennessee
- Decide how much you need and how many months you can pay.
- Compare lenders and check each license.
- Read the offer: APR, fees, number of payments and total repayment.
- Sign only if the monthly payment fits your budget.
Installment Loans in Tennessee: Pros and Things to Watch
Pros
- Fixed, predictable payments
- A known end date
- Smaller payments than a single lump-sum repayment
- Often larger amounts than a payday loan
Things to watch
- A longer loan can mean more interest in total
- Origination, late-payment and other fees
- Prepayment rules differ by lender
- Missed payments can add fees and hurt your credit
Many installment loans can be repaid early, which may reduce the total interest. Ask the lender about prepayment terms in writing before you sign.
Installment vs Payday Loans in Tennessee
| Feature | Installment loan | Payday loan |
|---|---|---|
| How you repay | Scheduled payments over weeks or months | One payment on the due date |
| Status in Tennessee | Legal, regulated by the Tennessee Department of Financial Institutions | Legal: $500 Max, 31 Days |
| What to compare | APR, fees, number of payments, total repayment | Fee per $100 and total repayment |
| Early repayment | Ask whether a penalty applies | Usually due in full at once |
Common Reasons People Borrow in Tennessee
People in Tennessee usually turn to an installment loan for a cost that is too large for one paycheck: a repair, a medical bill, moving costs or a pile of small debts they want to repay in one schedule. It works when the monthly payment fits your budget for the whole term.
Why Use MaybeLoan in Tennessee
- Free for borrowers: you never pay MaybeLoan.
- No loan decisions: the lender decides, not us.
- Lenders licensed in Tennessee: check each license with the Tennessee Department of Financial Institutions.
- How we earn: lenders may pay us when you apply through our links.
The loan calculator at the end of this page lets you test different amounts and terms. Adjusting both helps you find a payment that fits your budget.
Installment loans can still be expensive. Compare the APR and the total repayment of every offer, not only the monthly payment, and borrow only what you can repay on schedule.
Cheaper Options Before an Installment Loan in Tennessee
- Credit union loans. Credit unions often lend at lower rates to members. Ask one you can join in Tennessee.
- Paycheck advance from your employer or an earned wage access program, if your employer offers one.
- A payment plan. Utilities, landlords, doctors and many creditors will agree to a plan if you contact them before the due date.
- Local assistance. Call 211 or your county social services for help with rent, utilities and food.
Who to Contact About a Lender in Tennessee
Report a problem to the Tennessee Department of Financial Institutions.
Sources: Tennessee licensed consumer finance law as cited in the fields: unofficial mirror text read 2026-10-13, official text not read; evidence in docs/sources/regulators/installment/Tennessee.json. Data last checked: 2026-10. This page is general information, not legal advice.
Frequently Asked Questions About Installment Loans in Tennessee
