Tennessee maximum interest rate is the answer to “maximum interest rate allowed by law in Tennessee”. This guide gives the Tennessee figures in a dated table, explains in plain words what they mean, walks through the steps, and points to the official forms and free help.
The Tennessee maximum interest rate figures on this page were verified against a dated 50-state compilation and Tennessee sources as of October 2026; the statute named here is where to check them yourself.
Tennessee maximum interest rate at a Glance
| Legal rate when no rate is agreed | 10% per year unless otherwise provided by contract |
| Statute | Tenn. Code 47-14-103 |
In This Tennessee maximum interest rate Guide:
What the Tennessee Maximum Interest Rate Means
Usury means charging more interest than Tennessee law allows. The legal rate is a fallback that applies only when there is no agreed rate. A written, signed loan contract can set a higher rate, up to the “applicable formula rate”: 4 percentage points above the Federal Reserve’s weekly average prime loan rate, and never more than 24% a year (Tenn. Code 47-14-102).
The Department of Financial Institutions announced 10.75% on July 7, 2026, and that rate holds until the prime rate changes.
The Tennessee maximum interest rate Figures
| Rule | Bonus Bank Daily verified figure |
|---|---|
| Legal rate when no rate is agreed | 10% per year unless otherwise provided by contractcompilation / agency — verified Oct 2026 |
| Statute | Tenn. Code 47-14-103compilation / agency — verified Oct 2026 |
The Tennessee maximum interest rate figures on this page were verified against a dated 50-state compilation and Tennessee sources as of October 2026; the statute named here is where to check them yourself.
Who the Tennessee Maximum Interest Rate Applies To
The formula-rate cap generally covers written loan contracts that no more specific Tennessee statute governs. Banks chartered in other states and national banks may usually charge the rates allowed in their home state under federal law. Licensed lenders work under their own statutes: flex loans (Tenn. Code 45-12) allow 24% plus a daily fee of up to 0.7%, which can total about 279.5% a year, and payday lenders (Tenn.
Code 45-17) are capped at a 15% fee. Credit cards issued by out-of-state or national banks generally follow the issuer’s home-state rules.
Credit Cards and the Tennessee Maximum Interest Rate
Most credit cards come from national banks or banks chartered in other states. Federal law lets those banks “export” the interest rate allowed in their home state to customers anywhere, including Tennessee. Some home states set no cap at all, so a card rate above the Tennessee formula rate is in most cases legal.
What Happens When a Lender Breaks the Tennessee Maximum Interest Rate
Under Tenn. Code 47-14-117, a contract that requires usury on its face generally cannot be enforced as written, and the lender can usually recover only the principal it actually lent plus lawful interest. When usury is proven but does not appear on the face of the contract, recovery is limited to the principal plus lawful interest and charges. Under Tenn.
Code 47-14-112, knowingly charging usurious interest is a Class A misdemeanor. Confirm the details with the statute, the court clerk or an attorney.
How to Check a Loan Against the Tennessee Maximum Interest Rate
1) Find the APR on your Truth in Lending disclosure or loan contract. 2) Check whether the lender is a bank, a licensed flex or payday lender, or a private lender, because each follows different rules. 3) For a general written loan, compare the APR with the formula rate the Department of Financial Institutions announced for the week the loan was made.
4) If the APR is higher, ask the department or an attorney whether a special statute applies.
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Where to Report a Loan Above the Tennessee Maximum Interest Rate
The Tennessee Department of Financial Institutions licenses consumer, flex, payday and title lenders and takes complaints at tn.gov/tdfi. You may also file a complaint with the federal Consumer Financial Protection Bureau at consumerfinance.gov/complaint.
Common Mistakes With Tennessee maximum interest rate
The most common mistake is missing a deadline: court and creditor deadlines run whether or not you have read the papers, and a missed one usually cannot be undone. The second is relying on an old article or a friend’s experience in another state — the rules on this page differ from state to state and change often, which is why every figure here is dated.
The third is not keeping copies: every letter, form, receipt and bank statement may matter later, so keep them together and note the date you received each one.
Free Help With Tennessee maximum interest rate in Tennessee
You do not have to handle this alone or pay to get answers. The Tennessee court self-help center explains the forms and the steps, and court clerks can tell you where and how to file, although they cannot give legal advice.
Legal aid organizations represent many people at no cost when income is limited, and the Tennessee bar’s lawyer referral service can connect you with a lawyer for a low-cost first consultation. The Consumer Financial Protection Bureau accepts complaints about lenders, banks and debt collectors nationwide.
How We Verify the Tennessee maximum interest rate Figures
Every figure in the table above comes from our 50-state data file, built by reading the Tennessee statute or an official compilation of it, and each one carries the month we last checked it. Our writers do not change those figures; they explain them. When the law changes, the figure is updated and the date moves.
If something on this page no longer matches the statute, the statute controls — and we want to hear about it.
Tennessee’s cap moves with the market. The Department of Financial Institutions announces the formula rate every week, and a loan is generally measured against the rate in effect when the loan was made. Home loans have their own cap: 4 points above the average prime offer rate for a 30-year fixed loan, which was set at 10.49% for August 2026.
Next rung: the Tennessee payday loan page covers the short-term loans that have their own caps.
Tennessee — the bottom line
- Tennessee maximum interest rate rules set two numbers — the legal rate and the written-contract cap — both in the table above.
- Many lenders sit outside the Tennessee maximum interest rate cap by license or charter, so check which rule covers your loan.
- If a loan breaks the Tennessee maximum interest rate rules, keep the agreement and report it to the state regulator.
Tennessee Maximum Interest Rate FAQ
What is the maximum interest rate allowed by law in Tennessee?
Without an agreement: 10% per year unless otherwise provided by contract.
Official Tennessee Sources & Resources
- Statute and the Conference of State Bank Supervisors 50-state usury survey (verified by each state regulator) — maximum legal interest rate: https://www.csbs.org/50-state-survey-consumer-finance-laws
- Statute and the Conference of State Bank Supervisors 50-state usury survey (verified by each state regulator) — maximum legal interest rate: https://facts.csbs.org/consumer-finance-law/dev
- Tennessee statute / opinion: https://law.justia.com/codes/tennessee/title-47/chapter-14/
- Tennessee Department of Financial Institutions (weekly formula rate page): https://www.tn.gov/tdfi/tdfi-how-do-i/info/formula-rate.html
- Consumer Financial Protection Bureau: consumerfinance.gov
This Tennessee maximum interest rate guide was last verified against official Tennessee sources in October 2026. Rules change — confirm the current rule with the statute or a licensed attorney.
More Tennessee Money Rights Guides
Disclaimer: This guide is general information, not legal or financial advice. Bonus Bank Daily is an independent educational resource — not a law firm, not a bank, not a debt collector and not a government agency. Judgment, levy, interest-rate and debt rules change — every figure here carries the date we verified it.
Confirm the current rule with the statute, the court clerk or a licensed attorney in your state before you act.