When a person faces financial insecurity and needs funding quickly, they may consider obtaining a car title loan. A car title loan is a type of secured loan that is obtained by using the car title as collateral. If a person in Tennessee is trying to obtain a car title loan, they may be wondering if their state allows that kind of loan, as well as how the process works.
Car title loans are available to qualifying residents in Tennessee, and if a resident is interested in obtaining one, it may be helpful to know the ins-and-outs of the process. In addition, it could be helpful to know the specific laws that Tennessee has when it comes to title loan lending.
What Do I Need to Obtain a Car Title Loan in Tennessee?
There are a few documents a person will need to obtain a car title loan in Tennessee. Before inquiring for a loan, it may be helpful to compile the following documents and pieces of information:
- A valid driver’s license or state I.D.
- Proof of income (bank statements or pay stubs)
- A title to a qualifying vehicle in your name
- Pictures of your vehicle (front, rear, and sides)
With this information, the car title loan lender will determine eligibility and the amount of the loan. Eligibility for a cart title loan in South Dakota is greatly determined by the vehicle and the ability to repay the loan. The car’s value will be determined by the make, model, year, mileage, and condition of the car.
What Are the Laws and Regulations for Car Title Loans in Tennessee
When it comes to loans, each state has its own laws and regulations set in place to protect its residents. In the state of Tennessee, laws are stricter on lenders compared to other states- which is good news for borrowers. Here are some laws and regulations surrounding car title loans in Tennessee:
Cap on Car Title Loans
In Tennessee, a car title loan lender is not allowed to give out more than $2,500. This is to protect borrowers from taking out a loan they cannot afford and to protect them from high interest rates. For borrower’s in need of more money, a different kind of loan may be used to supplement the car title loan or fund their needs completely.
Interest Rates on Car Title Loans
Because interest on car title loans could be extremely high, regulations are set in Tennessee that caps the amount of interest a lender can charge. This is vastly different from other states who often have no caps on the amount of interest that can be charged to borrowers.
Car title loan lenders in Tennessee are not allowed to charge more than 2% of interest per month. However, they could charge their borrower other types of fees. Any fees that Tennessee lenders give out to their borrowers cannot add up to more than one fifth of the principal (originally borrowed) amount.
No Early-Repayment Fees for Car Title Loans in Tennessee
In many states, car title loans and other types of loans may have early repayment fees. These fees are added to the total cost of the loan if the borrower takes the initiative to pay back the loan early. For some people, the reduction of interest is sometimes worth the fee. In Tennessee, fees for early repayment are not allowed, which is great news for many borrowers.
Repossession Laws in Tennessee
Each state has different repossession laws, but generally once a title loan falls into default the lender has the right to repossess the vehicle. When it comes to Tennessee, the lender will hold the title of the vehicle until the entirety of the loan is paid back.
If the loan defaults, lenders to have the right to repossess the vehicle but they must hold it for a total of 20 days. This holding period gives the borrower time to pay back the loan. After the 20 day grace period, the lender then has 60 days to handle the car and sell it. Any repossession expenses that the borrower initially pays may be reimbursed by the lender.
Where Can I Obtain A Car Title Loan in Tennessee?
Max Cash Title Loans is not a direct car title loan lender, but we work with several reputable lenders throughout the United States, including Tennessee. These lenders may be willing to work with all sorts of financial situations, even those with low credit.5 With Max Cash Title Loans, the title loan process could be both fast and easy. If you are looking for a title loan in Tennessee, check us out online or give us a text/call at 855-561-5626.
For those wondering if they could obtain a title loan in Tennessee, the good news is that they may be able to! Car title loans are allowed in the state, and to obtain one a resident needs some documents and a title to a working car in their name. The good thing about obtaining a title loan in Tennessee is that there are many laws set in place to protect borrowers throughout the process.