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HB0775 • 2026

Interest Rates

AN ACT to amend Tennessee Code Annotated, Title 45, Chapter 5, relative to industrial loan and thrift companies.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Powers, Johnson
Last action
2025-04-08
Official status
Comp. became Pub. Ch. 70
Effective date
Not listed

Plain English Breakdown

The official source does not specify that limits on loan amounts over $5,000 are removed and replaced with a single limit of 36%. The bill increases the maximum interest rate uniformly to 36% for loans of $100 or more without distinguishing between different loan sizes.

Interest Rate Changes for Loans

This act changes the maximum interest rates that certain financial companies can charge on loans in Tennessee.

What This Bill Does

  • Increases the maximum interest rate from 30% to 36% per year for loans of $100 or more.
  • Raises the maximum acquisition loan charge from 10% to 12.5%.

Who It Names or Affects

  • Financial companies registered under Tennessee's industrial loan and thrift company laws.
  • People who take out loans from these financial companies.

Terms To Know

Industrial Loan and Thrift Company
A type of financial institution that provides loans to individuals, often with higher interest rates than traditional banks.
Acquisition Loan Charge
The fee charged by a lender for processing a loan application or other related services.

Limits and Unknowns

  • This act only affects companies registered under Tennessee's industrial loan and thrift company laws.
  • The changes will take effect on July 1, 2025, and apply to new contracts made after that date.

Bill History

  1. 2025-04-08 Tennessee General Assembly

    Comp. became Pub. Ch. 70

  2. 2025-04-08 Tennessee General Assembly

    Effective date(s) 07/01/2025

  3. 2025-04-08 Tennessee General Assembly

    Pub. Ch. 70

  4. 2025-03-25 Tennessee General Assembly

    Signed by Governor.

  5. 2025-03-19 Tennessee General Assembly

    Transmitted to Governor for action.

  6. 2025-03-19 Tennessee General Assembly

    Signed by H. Speaker

  7. 2025-03-18 Tennessee General Assembly

    Signed by Senate Speaker

  8. 2025-03-18 Tennessee General Assembly

    Enrolled and ready for signatures

  9. 2025-03-17 Tennessee General Assembly

    Sponsor(s) Added.

  10. 2025-03-17 Tennessee General Assembly

    Comp. SB subst.

  11. 2025-03-17 Tennessee General Assembly

    Passed H., Ayes 61, Nays 26, PNV 8

  12. 2025-03-17 Tennessee General Assembly

    Subst. for comp. HB.

  13. 2025-03-13 Tennessee General Assembly

    H. Placed on Regular Calendar for 3/17/2025

  14. 2025-03-12 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 3/13/2025

  15. 2025-03-12 Tennessee General Assembly

    Rec. for pass; ref to Calendar & Rules Committee

  16. 2025-03-10 Tennessee General Assembly

    Rcvd. from S., held on H. desk.

  17. 2025-03-06 Tennessee General Assembly

    Engrossed; ready for transmission to House

  18. 2025-03-06 Tennessee General Assembly

    Passed Senate, Ayes 22, Nays 4, PNV 1

  19. 2025-03-05 Tennessee General Assembly

    Placed on cal. Commerce Committee for 3/12/2025

  20. 2025-03-05 Tennessee General Assembly

    Rec. for pass by s/c ref. to Commerce Committee

  21. 2025-03-04 Tennessee General Assembly

    Placed on Senate Regular Calendar for 3/6/2025

  22. 2025-03-03 Tennessee General Assembly

    Senate Reset on calendar for 3-6-2025

  23. 2025-02-27 Tennessee General Assembly

    Placed on Senate Consent Calendar 2 for 3/3/2025

  24. 2025-02-26 Tennessee General Assembly

    Placed on s/c cal Banking & Consumer Affairs Subcommittee for 3/5/2025

  25. 2025-02-25 Tennessee General Assembly

    Recommended for passage, refer to Senate Calendar Committee

  26. 2025-02-20 Tennessee General Assembly

    Sponsor(s) Added.

  27. 2025-02-19 Tennessee General Assembly

    Sponsor(s) Added.

  28. 2025-02-18 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 2/25/2025

  29. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Commerce and Labor Committee

  30. 2025-02-10 Tennessee General Assembly

    Assigned to s/c Banking & Consumer Affairs Subcommittee

  31. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  32. 2025-02-06 Tennessee General Assembly

    P2C, ref. to Commerce Committee

  33. 2025-02-05 Tennessee General Assembly

    Intro., P1C.

  34. 2025-02-04 Tennessee General Assembly

    Filed for introduction

  35. 2025-02-03 Tennessee General Assembly

    Filed for introduction

Official Summary Text

INTEREST LIMITS

Present law authorizes a registrant under the industrial loan and thrift company laws to charge interest on loans where the amount financed is (i) $100 or m
ore, up to $5,000, on the principal at any rate not in excess of a maximum effective rate of 30% per annum and (ii) more than $5,000 on the principal at any rate not in excess of the maximum effective rate of 24% per annum. This bill revises this provisi
o
n to, instead, authorize such a registrant to charge interest on loans where the amount financed is $100 or more on the principal at any rate not in excess of the maximum effective rate of 36% per annum.

LIMITATIONS ON LOAN CHARGES

Present law authorize
s a registrant under the industrial loan and thrift company laws to charge acquisition loan charges in amounts no greater than 10% for any of the following loans:



Any loan amount of $100 or more up to and including the amount of $300.


Any loan amount in excess of $300 but not more than $400.


Any loan amount in excess of $400 but not more than $500.


Any loan amount in excess of $500 but not more than $1,000.


Any loan amount in excess of $1,000 but not more than $1,250.


Any loan amount in excess of $1,250 but not more than $1,500.


Any loan amount in excess of $1,500 but not more than $1,750.


Any loan amount in excess of $1,750 but not more than $2,000.

This bill increases the maximum acquisition loan charge from 10% to 12.5% for all of the loans listed abov
e.

Current Bill Text

Read the full stored bill text 
SENATE BILL 694
By Johnson

HOUSE BILL 775
By Powers

HB0775
002324
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 45,
Chapter 5, relative to industrial loan and thrift
companies.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 45-5-301(2)(A)(ii), is amended by
deleting the subdivision and substituting:
(ii) On loans where the amount financed is one hundred dollars ($100) or more,
on the principal at any rate not in excess of a maximum effective rate of thirty-six percent
(36%) per annum;
SECTION 2. Tennessee Code Annotated, Section 45-5-301(2)(A), is amended by
deleting subdivision (iii).
SECTION 3. Tennessee Code Annotated, Section 45-5-401(c)(2), is amended by
deleting the subdivision and substituting:
(2) Where the amount financed is one hundred dollars ($100) or more, at an
effective rate not to exceed thirty-six percent (36%) per annum; and
SECTION 4. Tennessee Code Annotated, Section 45-5-401(c), is amended by deleting
subdivision (3).
SECTION 5. Tennessee Code Annotated, Section 45-5-403(b)(1), is amended by
deleting "ten percent (10%)" wherever it appears and substituting "twelve and one half percent
(12.5%)".
SECTION 6. This act takes effect July 1, 2025, the public welfare requiring it, and
applies to contracts or agreements entered into, amended, or renewed on or after that date.