Best Personal Loans in Nashville, TN

How to choose a personal loan company in Nashville

Nashville residents seek personal loans for a variety of life situations. Whether you need assistance paying tuition at Belmont University or are interested in purchasing a new car, personal loans provide fast cash without the high interest rates attached to a credit card. Personal loans can be used for a variety of expenses in Nashville, from vacations to home improvements.

Personal loans are beneficial when you need cash sooner rather than later. In addition, personal loans often have lower interest rates than typical credit cards. Many Nashville residents use personal loans to refinance credit card debt or consolidate other loans at a lower interest rate, depending on their current financial situation.

In Nashville, residents can seek out a variety of different personal loan types, including:

• Secured personal loans: The lender will request collateral, such as your car or house, which can be taken if you default on the loan. Interest rates tend to be lower due to the lack of substantial risk.
• Unsecured personal loans: The lender does not require collateral for an unsecured loan. However, interest rates can range from five to 35 percent higher.
• Fixed rate loans: The loan’s interest rate and monthly payments do not change over the agreed upon payment term.
• Payday loans: These are unsecured personal loans that must be paid in full by the borrower’s next payday.
• Personal line of credit: Rather than receiving cash up front, borrowers receive a line of credit that they may access as needed.
• Variable-rate loans: The interest rate changes as the benchmark rate fluctuates, meaning your monthly payment can rise and fall.
• Debt consolidation loans: This personal loan combines your total debt into one loan with a lower interest rate.

While payday loans are illegal in certain states, Tennessee allows these loans under specific borrowing conditions.

Nashville residents with bad credit can still apply for and receive a personal loan. In addition to payday loans, many Tennessee credit unions are willing to work with members who have bad credit. However, this often means the loan amount may be smaller and with a higher interest rate. The lender may also require collateral for the personal loan.

Many lenders in Nashville allow you to apply for personal loans online. Credit unions and other financial institutions will list their eligibility requirements and can often provide an instant or rapid approval or denial once they receive an application.

The maximum amount of interest a lender can charge on a personal loan is 9.25 percent. However, this number is subject to change and may also be dependent upon the loan type borrowed. For instance, this does not apply to personal loans under $1,000 or single payment loans.

Tennessee law does not limit the minimum or maximum value for a personal loan. The financial institution, however, may set its own limits. Research each bank, credit union and financial lender to better understand what criteria they require before applying for a personal loan.

If you believe you are being overcharged on a personal loan, you may file a complaint with the Tennessee Department of Financial Institutions.