Tennessee Payday Loans – Best Payday Loan in Tennessee

Tennessee Payday Loans

Payday loans have become a popular way for people to get a short term cash infusion when emergency situations arise. Basically, a payday loan is an unsecured loan of a small amount (typically less that $1000) that is meant to be paid back within 2-4 weeks. These loans are not legal in every state in the US, but Tennessee is one of 25 states that have enacted laws authorizing payday loans and specifying the terms and conditions that lenders must follow when issuing payday loans. Tennessee payday loans are the 2nd most popular state for these types of loans; only California has more payday lenders.

Best Tennessee Payday Loan

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Go to Plain Green Loans
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Discount Advances
100 Day Loans
100 Day Loans
Cashnet USA
Cashnet USA
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Great Plains Lending
Great Plains Lending

General Regulations for Tennessee Payday Loans

Payday lenders in Tennessee are required by law to be licensed and to clearly display their license for the inspection of their customers. The lenders are required to have a minimum of $25,000 in net worth and must make records available of any person who owns 5% or more of the company. Licenses are renewable each month and the lender must pay a $500 fee for each location where they have lending operations.

Lenders are also required to provide every borrower with a statement in writing that clearly explains the fees that are being charged, the date the funds will be available and the repayment terms. This statement must be drafted in simple to understand language with no ambiguity.

Tennessee Payday Loan Amounts and Terms

Borrowers are permitted up to 3 outstanding payday loans at a time, although the value of these loans must not exceed $500. The loan term for each loan is a maximum of 31 days, although extensions are permissible as they are not specified under Tennessee law. In addition, payday lenders are not permitted to bring any criminal action against borrowers who become delinquent in their payments. They are permitted to charge a one time delinquency fee of $30. Lenders who are found in violation of the lending terms under Tennessee law are subject to a fine of up to $1000 per occurrence.

Tennessee Payday Loan Fees and APR

A payday lender in Tennessee is permitted to charge a flat fee of $30 or 15% of the loan amount, whichever is lesser, as a loan origination fee. Lenders can charge a finance fee of up to $17.65 per $100 borrowed, which works out to the maximum allowed APR of 459%. All of this should be clearly stated in the written document you receive when taking out a Tennessee payday loan.

There’s no need to tell you that a payday loan isn’t the best way to handle your obligations, but if you have no other options it may be the only way. With a small borrowing limit of $500 it is unlikely that anyone can get into serious trouble utilizing payday loans in Tennessee, however the exceedingly high fees, charges and APR means that any other alternative is more appealing. However, some people have no access to traditional lending such as bank loans, credit cards or personal loans. Due to this it is probably wise that Tennessee allows payday lending and has chosen to regulate it for the protection of its citizens.

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