Senate Bill 694 amends various provisions of the Tennessee Code Annotated related to industrial loan and thrift companies. The bill establishes that for loans of $100 or more, the maximum effective interest rate is set at thirty-six percent (36%) per annum. It also removes certain subdivisions from the existing law, specifically those that previously outlined different interest rate structures and conditions. Additionally, the bill increases the allowable percentage from ten percent (10%) to twelve and one half percent (12.5%) in a specified section.

The changes will take effect on July 1, 2025, and will apply to any contracts or agreements that are entered into, amended, or renewed on or after that date. This legislation aims to clarify and standardize the interest rates applicable to loans from industrial loan and thrift companies, ensuring that borrowers are aware of the maximum rates they may encounter.

Statutes affected:
Introduced: 45-5-301(2)(A)(ii), 45-5-301, 45-5-301(2)(A), 45-5-401(c)(2), 45-5-401, 45-5-401(c), 45-5-403(b)(1), 45-5-403