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EspañolPayday Loans and Cash Advance in Nashville, TN
Legal under the Deferred Presentment Services Act in Tennessee. What a shortfall looks like on Nashville rent and pay, the local rules, who to call for help, and how to request a cash advance online.
Nashville's boom has been hard on the people who keep it running. Vanderbilt University Medical Center, HCA Healthcare, state government and Metro schools anchor the big payrolls, but a large part of the city works in hotels, kitchens, the bars on Lower Broadway, construction crews and warehouses out toward the airport, where hours rise and fall with the tourist calendar. Rent has climbed faster than those wages. The median gross rent here is well above what renters pay in Memphis or Clarksville, which is why so many workers have moved out to Antioch, Madison and Bordeaux or over the county line and now drive in. WeGo buses cover the main pikes, but service thins out quickly away from them, so a car that will not start often means a missed shift. Weather adds its own bills: the May 2010 flood and the March 2020 tornado left thousands of households paying deductibles, hotel rooms and repairs out of pocket. A $500 gap here is usually a rent increase, a Nashville Electric Service bill after a hot August, or a tow and a new alternator. Tennessee allows payday and flex loans to cover it, and Metro zoning limits where those stores open, not what they charge.
What a $500 Shortfall Looks Like in Nashville
At Nashville's median household income of $77,371, a month's gross pay is about $6,448, so $500 is roughly 7.8% of it. The catch is housing: the median gross rent is $1,586, and $500 is about 31.5% of that. Income here is higher than the Tennessee median, but rent takes a bigger bite, so the cushion left after rent and a car payment is thinner than the income figure suggests.
Tennessee Rules That Apply in Nashville
| Rule | TN |
|---|---|
| Maximum amount | $500 aggregate face value of outstanding checks per customer with any one licensee and its affiliates (Tenn. Code 45-17-112) |
| Maximum fee per $100 | 15% of the face amount of the check, which is about $17.65 per $100 of cash advanced (Tenn. Code 45-17-112) |
| Maximum term | 31 calendar days (Tenn. Code 45-17-112) |
| Rollovers | Prohibited; a licensee may not renew or consolidate a transaction with the proceeds of another deferred presentment transaction it makes (Tenn. Code 45-17-112) |
| $300 for 14 days | $52.94 fee, 460% APR |
The full law, the regulator's phone number and the statute citations are on the Tennessee cash advance page.
Local Ordinance in Nashville
Nashville does not set loan terms, which come from Tennessee law, but Metro's zoning code treats alternative financial services as their own land use. That covers cash advance, title loan, check cashing, pawnshop and flex loan stores that are not a chartered bank, savings and loan or credit union. Under Metro Code 17.16.050, a new store cannot sit within 1,320 linear feet of the property line of another one, only one is allowed per parcel, and in the MUN and MUN-A mixed-use districts each is capped at 2,500 square feet of floor area. The use is prohibited outright in the Commercial Compatibility Overlay. The Metro Council tightened these rules in 2016 (BL2016-117 and BL2016-132, effective March 25, 2016) to stop the clustering of these stores along commercial corridors. The $500 limit, the 15% fee and the rollover ban still come from Tenn. Code 45-17-112.
Free Help in Nashville Before You Borrow
- 211 Helpline (United Way of Greater Nashville): Free referral line for rent, utility and food help in Middle Tennessee; dial 211 or text your ZIP code to 898-211, with navigators on weekdays from 8 a.m. to 5 p.m.. Call 211 or visit unitedwaygreaternashville.org/211-helpline.
- Metropolitan Action Commission: Davidson County's community action agency; runs energy assistance (LIHEAP) for electric, gas and propane bills, with applications online. Call 615-862-8860 or visit nashville.gov/departments/metro-action/community-programs/utility-assistance-program.
- Legal Aid Society of Middle Tennessee and the Cumberlands: Free civil legal help for people who cannot afford a lawyer, with a Nashville office; call the intake line to request help. Call 1-800-238-1443 or visit las.org/get-help/office-locations-and-the-counties-we-serve.
- Tennessee Department of Financial Institutions: State regulator that licenses deferred presentment (payday) lenders; license questions and complaints about a payday or flex loan. Call 615-741-2236 or visit tn.gov/tdfi/mortgage-consumer-lending/deferred-presentment.html.
Nashville on the Map
Frequently Asked Questions
Does Nashville restrict payday and title loan stores?
Yes, through zoning. Metro Code 17.16.050 treats cash advance, title loan, check cashing, pawn and flex loan stores as alternative financial services and keeps each new one at least 1,320 feet from another, with one per parcel. The Metro Council tightened the rule in 2016. The cost and size of the loan itself still come from Tennessee law, not from Metro.
What does a $300 payday loan cost in Nashville?
Tennessee lets the lender charge up to 15% of the check's face amount. To walk out with $300 you write a check for $352.94, and the $52.94 difference is the fee. Held for 14 days, that is about a 460% APR; stretched to the 31-day maximum it is about 208%. Rolling it into a new loan with the same lender is illegal.
Is a flex loan cheaper than a payday loan in Nashville?
Usually not. A Tennessee flex loan under the Flexible Credit Act can run up to $4,000 at 24% annual interest plus a daily fee of up to 0.7% of the average balance, which adds up to more than 255% a year before interest. There is no fixed end date, only a required 3% monthly paydown, so a flex balance can last far longer than a payday loan.
Where can I get help with an NES bill in Nashville?
The Metropolitan Action Commission runs the energy assistance program (LIHEAP) for Davidson County; applications are online and the call center is 615-862-8860. Dial 211 or text your ZIP code to 898-211 for rent and food referrals from United Way of Greater Nashville. If a lender or collector sues you, the Legal Aid Society's intake line is 1-800-238-1443.
