CLEARBORROW · PUBLISHED NOVEMBER 12, 2026
Payday loans in Tennessee: limits and fees
Tennessee’s Deferred Presentment Services Act caps the fee at 15% of the face amount of the check (or internet payday loan) and limits agreements to 31 days. A lender may hold checks totalling no more than $500 for one customer. On a $500 check that means a $75 fee and $425 in cash — about 460% APR for two weeks.
On this page
The rules
| Rule | Tennessee limit |
|---|---|
| Checks held for one customer | $500 in total |
| Fee | Up to 15% of the face amount of the check |
| Term | No more than 31 days |
Sources: Tennessee DFI ↗, Tenn. Code § 45-17-112 ↗.
Fee table
| Check | Maximum fee | Cash received | Two-week APR |
|---|---|---|---|
| $200 | $30 | $170 | 460% |
| $300 | $45 | $255 | 460% |
| $500 | $75 | $425 | 460% |
Our arithmetic at the 15% maximum.
Check the license
Tennessee DFI points consumers to NMLS Consumer Access to look up licensed deferred presentment (payday) lenders (Tennessee DFI ↗).
Cheaper options to compare
- A payday alternative loan from a federal credit union (APR capped at 28%).
- A cash advance app — compare costs with our fee calculator.
- Asking the company you owe for more time or a payment plan.
- If you already owe a payday loan: extended payment plans and getting out of payday debt.
Questions
How much can I borrow from a payday lender in Tennessee?
Checks held for you cannot exceed $500 in total, and the fee comes out of that.
What is the fee on a $300 payday loan in Tennessee?
Up to $45 (15% of the check), leaving $255 in cash.
How long can it last?
No more than 31 days.
Sources and limits
- Tennessee DFI: consumer notice — Deferred Presentment Services Act ↗
- Tenn. Code § 45-17-112: $500 limit on checks held ↗
- Tennessee DFI: check licensed payday lenders (NMLS) ↗
Sources checked November 12, 2026. Laws change; confirm with your state regulator before borrowing. This is general information, not legal advice. Worked examples are our own arithmetic. How we use sources.