Title Loans in Tennessee

In Tennessee you will rarely see the words “title loan” in a contract. The state calls them title pledges, and they are governed by their own statute with specific fee, size and renewal limits. If you are weighing title loans in Tennessee, knowing those limits can help you spot a bad deal and estimate what you will really pay. In this guide from Auto Cash Title Loans, we cover the Tennessee Title Pledge Act, a worked cost example, the repossession timeline, and how the rules play out in Nashville, Memphis, Knoxville and Kingsport.

Are title loans legal in Tennessee?

Yes. Title pledge lending is legal in Tennessee for companies licensed by the Tennessee Department of Financial Institutions (TDFI). A separate license is required for each location, and applications and renewals are filed through the Nationwide Multistate Licensing System (NMLS).

The governing law: the Tennessee Title Pledge Act

The Tennessee Title Pledge Act (Tenn. Code Ann. § 45-15-101 et seq.) defines a title pledge agreement as a 30-day written agreement in which you give the lender a security interest in your vehicle’s title. Under T.C.A. § 45-15-105, no one may engage in title pledge lending without a license.

What the law allows and limits

• Maximum amount: under T.C.A. § 45-15-115(3), the total of all title pledge agreements against a single certificate of title may not exceed $2,500. The limit is per title, so a new loan plus any outstanding balance on the same title cannot exceed it.
• Interest: the lender may charge an effective interest rate of up to 2% per month.
• Fee: on top of interest, the lender may charge a fee of up to one-fifth (20%) of the original principal, or of the unpaid balance on a renewal.
• Term and renewals: each agreement runs 30 days and may be renewed for additional 30-day periods. Starting with the third renewal, you must pay down at least 5% of the original principal at each renewal, so interest and fees shrink as the balance falls.
• Default and repossession: after a default, TDFI’s 2026 industry report says the lender must hold the vehicle and title for a 20-day period, then has 60 days to sell it in a commercially reasonable manner.

What a Tennessee title pledge costs

Using the statutory maximums, here is what a $1,000 title pledge for 30 days could cost:

• Interest at 2% for one month: $20
• Fee of up to one-fifth of principal: $200
• Total charges: up to $220, or $1,220 due in 30 days

That is roughly a 268% APR. If you renew instead of paying in full, you pay charges again on the unpaid balance each month. Required principal reductions begin only at the third renewal. Three months at the full balance (the original term plus two renewals) can cost $660 in interest and fees on a $1,000 pledge before the required paydowns begin. Ask the lender for the Truth in Lending disclosure and calculate the cost of renewing, not just of a single month.

How a title pledge works here

You bring a vehicle with a clear Tennessee title in your name, a government ID and, at most lenders, proof of income. The lender holds the title as security while you keep driving. Bing searches often ask whether you can pledge a title in someone else’s name with their permission. The person on the title is the one pledging it, and lenders generally require that person to sign, so a relative’s car means a relative’s risk. Ask the lender about its policy before you apply.

Title loans in Tennessee’s major cities

The Title Pledge Act is statewide, so the $2,500 limit, 2% monthly interest and fee cap are the same in Memphis and in Kingsport. Prices can differ below those caps, so compare. What does differ is competition: some areas have many storefronts on the same corridor, others very few.

• Nashville: TDFI is based in the capital. Use its license search before you sign, and call the Department if a lender quotes charges above the statutory caps.
• Memphis: national chains operate here alongside local stores; our review of TitleMax title pawns in Memphis shows what one chain offers.
• Knoxville and Chattanooga: East Tennessee storefronts must follow the same caps. Watch for add-on products that are not part of the title pledge itself.
• Clarksville: next to Fort Campbell. Active-duty borrowers and their dependents are covered by the federal Military Lending Act’s 36% military APR limit, which is far below title pledge pricing.
• Murfreesboro and Jackson: fast-growing markets with many storefronts. The renewal and principal-reduction rules apply regardless of the store.
• Kingsport, Johnson City and Bristol: Tri-Cities residents often compare options across the state line. Virginia caps title loan interest at 36% a year, and the state regulator reports no licensed title lenders there; see our Virginia guide.

Before you sign: a Tennessee checklist

• Confirm the store’s TDFI license; each location needs its own.
• Check that the amount, plus any balance already on the same title, does not exceed $2,500.
• Look for interest of no more than 2% a month and a fee of no more than one-fifth of principal.
• Ask for a written renewal schedule showing the 5% principal reductions starting with the third renewal.

Safer alternatives

Many borrowers can avoid a 268% APR. Our title loan alternatives page covers these in detail.

• Credit union PALs: $200 to $2,000 at no more than 28% APR, with a fee of no more than $20.
• Installment loans from licensed lenders: fixed payments that reduce principal from the start.
• Payment plans: utilities, hospitals and landlords may work with you if you ask early.
• 211: connects Tennesseans with emergency rent, utility and food help.

How to check a lender’s license and complain

Search the lender on NMLS Consumer Access or TDFI’s license lookup. Every location needs its own license. Red flags include charges above 2% a month plus the one-fifth fee, loans above $2,500 on one title, or refusal to apply the required 5% principal reduction from the third renewal. If a problem arises, review your borrower rights and file a complaint with TDFI’s Consumer Resources office or the CFPB.

Frequently asked questions

What is the most I can borrow on a Tennessee title pledge?

$2,500 in total against any single certificate of title, under T.C.A. § 45-15-115(3). A lender may also lend less based on the vehicle’s value.

How much interest can a Tennessee title lender charge?

Up to 2% per month in interest, plus a fee of up to one-fifth of the original principal (or of the unpaid balance on renewals).

How many times can I renew?

Renewals are allowed in 30-day increments, but starting with the third renewal you must reduce the original principal by at least 5% each time, which limits how long a loan can roll over.

What happens if I can’t repay?

The lender can take possession of the vehicle. TDFI describes a 20-day holding period after default, followed by up to 60 days to sell the vehicle in a commercially reasonable manner. Contact the lender as early as possible to ask what it would take to get the vehicle back before a sale.

What are Tennessee’s title loan requirements?

Typically a vehicle titled in your name with no other liens, a valid ID and, at most lenders, proof of income. Specific requirements vary by lender.

Sources

• TDFI: Title Pledge Lenders
• TDFI: Title Pledge Lender FAQ
• TDFI: 2026 Title Pledge Report
• TDFI: Title Pledge Act law

Last reviewed: October 2026.