Car Title Loans in Tennessee

Title loans are legal in Tennessee, but the Tennessee Title Pledge Act (Tenn. Code Ann. 45-15-101 et seq.) limits what a lender may charge: Interest not to exceed 2 percent per month plus a customary fee of not more than one-fifth (1/5) of the original principal amount (or unpaid balance on renewals), per Tenn. Code Ann. 45-15-111(a) as quoted on TDFI’s FAQ. Loans Inc connects Tennessee residents with participating independent lenders that offer this product. We are not a lender; the lender you are matched with decides whether to approve you and on what terms. This page explains what Tennessee law allows, who enforces it, and what to check before you sign.

Are title loans legal in Tennessee?

Yes, with a rate cap. The provisions that apply are Tenn. Code Ann. 45-15-101 et seq.; 45-15-103(10)-(11) (definitions); 45-15-105(a) (license); 45-15-111(a)-(b) (interest, fee, repossession charge); 45-15-113(a)-(b) (30-day term, renewals, disclosures); 45-15-114(a), (b)(2) (20-day redemption, commercially reasonable sale within 60 days); 45-15-115(2), (3), (12), (16) (sole recourse, $2,500 cap, no prepayment penalty, no consolidation); 45-15-116 (safekeeping/insurance).

The operative language in the statute reads: “’Title pledge agreement’ means a thirty-day written agreement whereby a title pledge lender agrees to make a loan of money to a pledgor”

Who regulates title lenders in Tennessee

Title lenders in Tennessee are supervised by the Tennessee Department of Financial Institutions, Compliance Division. Before you sign, ask the lender for its license number and confirm it with the regulator. Complaints about a lender go to the regulator and can also be filed with the Consumer Financial Protection Bureau.

Rate caps and fees in Tennessee

Interest not to exceed 2 percent per month plus a customary fee of not more than one-fifth (1/5) of the original principal amount (or unpaid balance on renewals), per Tenn. Code Ann. 45-15-111(a) as quoted on TDFI’s FAQ; interest and fee are deemed earned, due and owing on the agreement date and a like sum each subsequent thirty-day period if renewed (no refund on early payoff); plus, as reimbursement, a repossession charge not exceeding the actual amount charged by third parties to repossess and deliver the vehicle (45-15-111(b)); after default no additional interest or fees may be charged (45-15-115(2)); no prepayment penalty (45-15-115(12)).

Separately, federal law caps the Military Annual Percentage Rate at 36% for active-duty service members and their dependents on most consumer credit, including title loans (Military Lending Act, 32 CFR Part 232).

Rates, fees, and repayment terms are set by the lender you are matched with and vary by state. Before you sign, the lender will give you a full written disclosure of the APR, fees, payment schedule, and total cost. Loans Inc does not set or guarantee any loan terms.

What the Tennessee cap means in dollars

Illustrative only. On a $1,000 loan for 30 days, the maximum finance charge allowed by Tenn. Code Ann. 45-15-111(a), as stated by the Tennessee Department of Financial Institutions (2% interest per month plus a fee of up to one-fifth of the principal) is about $20, plus a fee of up to $200, for a total repayment of about $1,220. A lender may charge less than the maximum, and the written disclosure the lender gives you before you sign is the figure that counts. This is an illustration of a statutory ceiling, not an offer from any lender.

Loan terms in Tennessee

Thirty-day written agreement (45-15-103(10)); agreements ‘may provide for renewals for additional 30-day periods, which may occur automatically’ unless one of four events in 45-15-113(a)(1)-(4) occurs; specified disclosures must be given with every renewal (45-15-113(b)); a 5 percent principal reduction is required beginning with the third renewal and at each subsequent renewal (TDFI FAQ); consolidation of title pledge agreements is prohibited (45-15-115(16)); a one-day right of rescission is referenced (TDFI FAQ).

Repossession rules in Tennessee

On default the lender’s only recourse is repossession and sale of the pledged property; lenders cannot sue for fees or deficiencies (45-15-115(2); 45-15-114). After repossession the pledgor has twenty (20) days to redeem by paying interest, fees, principal and repossession charges, and the lender must retain possession during that holding period (45-15-114(a)). Sale must be commercially reasonable under Tenn. Code Ann. Title 47, Chapter 9, Part 6 and must commence within sixty (60) days after the 20-day holding period (45-15-114(b)(2)). Surplus proceeds are reimbursed to the pledgor; unclaimed surplus is reported to the Treasury Unclaimed Property Division (TDFI FAQ). Repossession charge limited to actual third-party cost; internal costs and post-repossession storage/repair may not be added (45-15-111(b)). Lender must keep pledged property in a safe place with insurance for the pledgor’s benefit naming the commissioner as additional insured (45-15-116).

A title loan is secured by your vehicle. If you do not repay according to the loan agreement, the lender may repossess your vehicle. Late or missed payments may be reported and may affect your credit. If you are struggling to pay, contact the lender before the due date; the options available to you are set by the loan agreement and Tennessee law.

Your rights as a borrower in Tennessee

Before any title pledge agreement on a motor vehicle the lender must provide a standardized consumer notification and disclosure form, compliant with the federal Truth in Lending Act, itemizing all interest, fees, charges and other costs (45-15-111; TDFI Rule 0180-27-.04); knowing failure subjects the license to suspension or revocation (Rule 0180-27-.01). No prepayment penalty (45-15-115(12)). Pledgor has the exclusive right to redeem the certificate of title by repaying in full, after which the lender must release the security interest and return the title (45-15-103(10)). A separate license is required for each location and licenses are not transferable or assignable (45-15-105(a); 45-15-106(g)). Statutory hours of operation apply to title pledge lenders (45-15-115(a)(8)).

How title loans work in Tennessee: requirements and process

Lenders in our network typically ask Tennessee applicants for:

• A vehicle title in your name, free of other liens
• A government-issued photo ID
• Proof of income or ability to repay
• Proof of Tennessee residence
• A vehicle inspection, often completed with photos

You apply once through our site; the lender you are matched with reviews the application and vehicle and makes the approval decision. Read how our matching service works and the difference between a direct lender, a broker, and a lead generator. In Tennessee, the statutory maximum is $2,500 in the aggregate against any single pledged property title, combining all outstanding title pledge agreements with the same lender on that title (Tenn. Code Ann. 45-15-115(3), per TDFI FAQ). Many lenders in our network can fund approved loans as soon as the same business day. Timing depends on the lender’s approval, when you apply, document verification, and your bank’s processing.

Alternatives to a title loan in Tennessee

Before you borrow against your car, compare lower-cost options available to Tennessee residents. Federal credit unions can offer payday alternative loans with capped rates; use the NCUA credit union locator to find one near you. Dial 211 or visit 211.org for local emergency assistance programs. Nonprofit counselors listed by the National Foundation for Credit Counseling can help with a repayment plan. Our guide to title loan alternatives compares each option and when it costs less.

Frequently asked questions

Sources

Loans Inc is not a lender and does not make loans in any state. The information on this page is drawn from the sources listed below and is provided for general education. The lender you are matched with is responsible for complying with the laws of your state. Last reviewed 15 September 2026 by the Loans Inc Editorial Team. Next review due March 2027.