Tennessee SB0694 amends the state's laws on industrial loan and thrift companies, setting a maximum interest rate of 36% for loans of $100 or more.

Tennessee SB0694 amends Tennessee Code Annotated, Title 45, Chapter 5, to revise the interest rate cap for loans provided by industrial loan and thrift companies. The bill sets a maximum effective rate of 36% per annum on loans where the amount financed is $100 or more. It also adjusts the minimum percentage of net income that must be paid into the reserve fund from 10% to 12.5%. The changes apply to contracts or agreements entered into, amended, or renewed on or after July 1, 2025.

Tennessee SB0694 amends the state's laws on industrial loan and thrift companies, setting a maximum interest rate of 36% for loans of $100 or more.

Tennessee SB0694 amends Tennessee Code Annotated, Title 45, Chapter 5, to revise the interest rate cap for loans provided by industrial loan and thrift companies. The bill sets a maximum effective rate of 36% per annum on loans where the amount financed is $100 or more. It also adjusts the minimum percentage of net income that must be paid into the reserve fund from 10% to 12.5%. The changes apply to contracts or agreements entered into, amended, or renewed on or after July 1, 2025.