Bill > SB0694

This bill amends Tennessee's laws regarding industrial loan and thrift companies by increasing the maximum permitted effective interest rate from 30% to 36% per annum for loans of $100 or more. The legislation makes several specific changes to the Tennessee Code Annotated, including removing certain existing subdivisions related to interest rate calculations and adjusting the percentage for some financial calculations. Specifically, the bill modifies Sections 45-5-301 and 45-5-401 to standardize the maximum interest rate at 36% for loans of $100 or more, and changes a separate provision related to financial calculations from 10% to 12.5%. The bill is set to take effect on July 1, 2025, and will apply to contracts or agreements entered into, amended, or renewed on or after that date. This change essentially allows industrial loan and thrift companies more flexibility in setting interest rates for larger loans, potentially providing more lending options for consumers while also increasing the potential cost of borrowing.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0694&ga=114