$500 Payday Loans in Nashville, TN

Yes, payday loans are legal in Nashville under the Tennessee Deferred Presentment Services Act, supervised by the Tennessee Department of Financial Institutions (TN Dept of Fin. Inst.). State law sets the maximum check amount at $500 and caps the lender's fee at 15% of the check amount. Because the fee is calculated on the check face value, writing a $500 check with a 15% fee ($75) yields $425 in cash in hand. In Nashville—a city of 475,253 residents with a U.S. Census Bureau median household income of $82,142 and a median rent of $1,544—borrowers often seek $500 to bridge a temporary medical or auto expense.

Nashville has 41 licensed loan offices operated by 8 loan companies, 19 pawn shops, and 17 credit unions headquartered in the city. Review the facts box and the office list below on this page, or check our Tennessee and Nashville guides for additional context. Your CU Partner is not a lender or broker and does not make loan decisions.

Licensed deferred presentment offices in Nashville follow standardized state verification and disclosure steps.

1. Bring your ID, income proof, and checkbook. You must be at least 18 years old and present a government photo ID, recent pay stubs or income documentation, and an active checking account.
2. Make sure you have no other open checks over the limit. Under Tennessee law, a lender cannot hold deferred presentment checks from you totaling more than $500 at one time.
3. Read the Truth in Lending Act disclosure statement. Before signing, confirm the written Regulation Z figures: the amount financed, the finance charge (capped at 15% of the check amount), the APR, and the due date of up to 31 days.
4. Sign the deferred presentment agreement. You provide a personal check or electronic debit authorization for the agreed payoff date.
5. Receive funds and repay in full on the due date. Storefronts pay out cash immediately, and because Tennessee prohibits rollovers, you must clear the full balance when the term of up to 31 days expires.

Using the typical national fee of $15 per $100 borrowed (matching a 15% fee rate), a two-week $500 payday loan carries a $75 fee and a 390% APR (about 391% nationally), requiring a $575 repayment in 14 days. When a Tennessee lender applies the 15% fee cap inside the $500 check maximum ($75 fee on a $425 cash payout), the typical APR in Tennessee reaches about 460%.

Rollovers are prohibited in Tennessee, so you cannot pay a second $75 fee just to extend the loan's due date. If you authorize an electronic bank debit and later need to stop it, federal Regulation E allows you to revoke preauthorized recurring debits by notifying your bank at least 3 business days before the scheduled date, though the underlying debt remains due.

Nashville has 17 credit unions headquartered locally, giving borrowers practical ways to borrow $500 without a 390% to 460% APR.

• Credit union PAL. An NCUA PAL from a participating federal credit union offers $200 to $2,000 for 1 to 12 months at up to 28% APR, with an application fee capped at $20. For a $500 PAL over 6 months, your monthly payment is $90.27 and your total cost including a $20 fee is $62—saving $13 compared to a single $75 two-week payday fee.
• Tennessee Industrial Loan and Thrift installment loan. Under the Tennessee Industrial Loan and Thrift Companies Act, licensed lenders offer multi-month loans with a max APR of 114% for $500, 49% for $2,000, and 26% for $10,000. These loans include either a 4% loan closing fee under the standard method or a 12.5% acquisition charge under the alternative method (Tenn. Code Ann. § 45-5-403(b), increased from 10% in 2025).
• Credit card cash advance or wage app. A typical credit card cash advance costs about 5% upfront ($10 minimum) plus roughly 30% APR from day one, while cash advance apps provide small paycheck advances with optional express fees or monthly memberships.

The Tennessee Deferred Presentment Services Act sets a minimum age of 18, caps check amounts at $500, limits terms to up to 31 days, caps fees at 15% of the check amount, and bans rollovers. The TN Dept of Fin. Inst. regulates both deferred presentment offices and industrial loan and thrift companies.

Covered active-duty military members and their dependents are protected by a 36% APR cap under the Military Lending Act. In Tennessee, you cannot be arrested or jailed for an unpaid consumer debt. Verify licenses with the TN Dept of Fin. Inst. or nmlsconsumeraccess.org, and file complaints with the state regulator or the CFPB at consumerfinance.gov.