Current Regulations for Tennessee Title Loans
In Tennessee, the maximum loan amount of a title loan is usually around 50% to 60% of the total vehicle value. Across many lenders, this principal loan sum can range from $100 to $50,000.
On your principal, lenders are also allowed to take finance charges amounting to one-fifth of the loan, in addition to a monthly interest of 2%.
The loan term is a 30-day window, but borrowers can renew it. After the third renewal, you must pay 5% or more of the loan amount and other fees to be able to renew again.
There is no maximum APR in the state, and lenders in different cities are allowed to set their limits.
Benefits of Getting Title Loans in Tennessee
Below are some of the advantages of taking out a title loan.
- Easy Qualification: Ideally, if you have a valid car title, you stand a high chance of getting funding.
- Fast Funding: Typically, you can get the money in as little as 24 hours after signing the loan contract.
- Keep the Vehicle: With a car title loan, you still have your car and can drive it as long as you make your payments.
- Soft Credit Pull: Most title loan lenders will only perform a soft check, which does not hurt your credit.
Eligibility Criteria for Tennessee Title Loans
While having a car is a primary consideration for an auto title loan, there are other criteria that qualify you for funding. Here are some important ones.
- Age: You must be at least 18 years or older.
- Residence: You must be a resident of Tennessee.
- Title: It is important to have a car title in your name. Ensure there are no pending liens or loan repayments on the vehicle’s title.
- Income: Some lenders require you to show a stable source of income from employment or social benefits.
Places to Apply for Title Loans in Tennessee
Intending borrowers can get a title loan from in-person stores or online lenders in Tennessee. If you’re interested in visiting a physical store for your loan application, you can find reliable services on this page.
On the other hand, if you wish to apply online, you can submit an online application form on WeLoans with your car details. You’ll get connected with multiple title loan lenders within seconds.
Title Loan Default in Tennessee
Tennessee title loan lenders hold the vehicle titles till borrowers repay the loans in full. If the borrower defaults on payment, the lender is allowed to repossess the car. However, before repossession, a lender must allow up to 20 days for the borrower to fully repay the amount owed.
If the borrower fails to pay the money owed within that period, the lender is permitted to sell the vehicle within 60 days. Lenders are restricted from converting the car for personal use or buying it for themselves.
