Car Title Loans in Tennessee2026 Guide
Tennessee allows title loans under the Title Pledge Act.
Legal Status & Regulations
Governing Law
TN Code §45-15-101
Last Reviewed: April 2026
Law Summary
The Tennessee Title Pledge Act (TN Code § 45-15-101) governs title loans. Interest rates and fees are capped at 2% per month, but lenders can also charge a monthly "customary fee" of up to 20% of the loan amount, effectively creating a high APR. Loans are 30-day terms and can be renewed. Lenders must provide a "Title Pledge Agreement" with specific disclosures and are regulated by the Department of Financial Institutions. Tennessee law requires that if a vehicle is repossessed, the lender must follow specific procedures for its sale. Borrowers have a 30-day period after the loan maturity date to redeem the vehicle by paying the full amount due plus any storage fees. Any surplus from the sale of a repossessed vehicle must be returned to the borrower.
Real Rate Example in Tennessee
A $1,500 loan in Tennessee at a typical market rate of APR over 30 days would result in approximately $150 in interest and fees. Always compare multiple offers to find the most competitive rate.
What Documents You Need
- A clear vehicle title in your name
- A valid government-issued ID (Driver's License)
- Proof of residency (Utility bill, etc.)
- Proof of income or ability to repay
- The vehicle itself for a quick inspection
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Max Loan Amount
N/A
Max APR / Rate
N/A
Loan Term Range
Varies
Governing Body
TN Dept. of Financial Institutions