How Many Payday Loans Can You Have in Tennessee at Once

Posted on

How Many Payday Loans Can You Have in Tennessee at Once?

Payday loans are a popular short-term financial solution for many individuals facing unexpected expenses or financial emergencies. These loans provide quick access to cash, with the borrower agreeing to repay the amount borrowed, plus interest, on their next payday. However, it is important to understand the regulations surrounding payday loans in each state, as they can vary.

In the state of Tennessee, there are laws and regulations in place to protect consumers from the potential pitfalls of payday loans. These regulations include limits on the number of payday loans an individual can have at once. Understanding these limits is crucial to ensure you are making informed decisions about your finances. In this article, we will explore how many payday loans you can have in Tennessee at once and answer some frequently asked questions about payday lending in the state.

The Number of Payday Loans Allowed in Tennessee

In Tennessee, the law states that individuals are limited to a maximum of two payday loans at any given time. This limit applies to both online and in-store payday loans. If you already have two outstanding payday loans, you will not be able to take out another one until at least one of them is repaid.

Additionally, there is a cap on the total amount borrowed through payday loans. The total combined loan amount cannot exceed $500. This means that if you have two payday loans, their combined value cannot be more than $500. It is important to note that these limits are in place to protect borrowers from getting trapped in a cycle of debt and to prevent predatory lending practices.

See also  How Can I Get a Legitimate Personal Loan

Frequently Asked Questions about Payday Loans in Tennessee

1. Can I renew or rollover my payday loan in Tennessee?

No, rollovers and renewals are not allowed under Tennessee law. This means that you cannot extend the repayment period of your payday loan by paying only the interest or fees. Instead, you must repay the full loan amount, plus any applicable fees, on the agreed-upon due date.

2. Is there a cooling-off period between payday loans in Tennessee?

Yes, there is a cooling-off period requirement in Tennessee. After repaying a payday loan, you must wait at least one business day before taking out another loan. This waiting period allows borrowers time to reassess their financial situation and make informed decisions about their borrowing needs.

3. Are there any additional fees or charges associated with payday loans in Tennessee?

Yes, payday lenders in Tennessee are allowed to charge additional fees and charges. These fees may include origination fees, processing fees, and non-sufficient fund (NSF) fees. It is important to carefully review the terms and conditions of any payday loan you are considering to understand the total cost of borrowing.

4. Can I be prosecuted or go to jail for not repaying a payday loan in Tennessee?

No, under Tennessee law, you cannot be prosecuted or go to jail for failing to repay a payday loan. However, lenders may pursue collection actions, such as contacting you to collect the debt or reporting non-payment to credit bureaus, which can negatively impact your credit score.

5. Are there alternatives to payday loans in Tennessee?

See also  How Does Auto Title Loans Work in New Mexico?

Yes, there are alternatives to payday loans in Tennessee. Some options include seeking assistance from local nonprofit organizations, exploring low-interest personal loans from banks or credit unions, or reaching out to friends and family for financial support. It is important to exhaust all other options before considering a payday loan due to their high interest rates and fees.


Payday loans can provide a lifeline for individuals facing financial emergencies, but it is important to understand the regulations and limitations surrounding these loans to make informed decisions. In Tennessee, individuals are limited to a maximum of two payday loans at any given time, with a total combined loan amount not exceeding $500. It is crucial to carefully assess your financial situation and consider all alternatives before taking out a payday loan.