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SB0694 • 2026

Interest Rates

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

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Johnson, Powers
Last action
2025-04-08
Official status
Effective date(s) 07/01/2025
Effective date
Not listed

Plain English Breakdown

The bill summary and text do not provide specific details about the removal of old rules regarding loans over $5,000. This claim was removed due to lack of supporting evidence in the official source material.

Interest Rates for Loans

This bill changes how much interest industrial loan and thrift companies can charge on loans of $100 or more in Tennessee.

What This Bill Does

  • Changes the maximum interest rate that these companies can charge to 36% per year for loans of $100 or more.
  • Increases the fee limit from 10% to 12.5% on certain loan amounts.

Who It Names or Affects

  • Industrial loan and thrift companies in Tennessee.
  • People who take out loans of $100 or more from these companies.

Terms To Know

industrial loan and thrift company
A type of financial institution that lends money to people, often for short-term needs.
interest rate
The percentage of the amount borrowed that is charged as a fee by the lender over a certain period of time.

Limits and Unknowns

  • This bill only affects companies and people in Tennessee.
  • It does not change how much interest can be charged on loans less than $100.
  • The changes will start on July 1, 2025.

Bill History

  1. 2025-04-08 Tennessee General Assembly

    Effective date(s) 07/01/2025

  2. 2025-04-08 Tennessee General Assembly

    Pub. Ch. 70

  3. 2025-04-08 Tennessee General Assembly

    Comp. became 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

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

  10. 2025-03-17 Tennessee General Assembly

    Subst. for comp. HB.

  11. 2025-03-17 Tennessee General Assembly

    Sponsor(s) Added.

  12. 2025-03-17 Tennessee General Assembly

    Comp. SB subst.

  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

    Introduced, Passed on First Consideration

  31. 2025-02-10 Tennessee General Assembly

    Assigned to s/c Banking & Consumer Affairs Subcommittee

  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 
HOUSE BILL 775
By Powers

SENATE BILL 694
By Johnson

SB0694
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.