Download Free Loan Agreement Template for Tennessee

Terms and conditions for lending money

Sales Tax: 7%Notary: $5Witnesses: 2

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LOAN AGREEMENT
State of Tennessee

This Loan Agreement is entered into on [DATE] between:

LENDER:
Name: [LENDER NAME]
Address: [ADDRESS], TN [ZIP]

BORROWER:
Name: [BORROWER NAME]
Address: [ADDRESS], TN [ZIP]

1. LOAN AMOUNT: $[PRINCIPAL AMOUNT]
2. INTEREST RATE: [RATE]% per annum [  ] Fixed [  ] Variable
3. LOAN DATE: [DATE]
4. MATURITY DATE: [DATE]
5. PAYMENT SCHEDULE:
   [  ] Monthly payments of $[AMOUNT] beginning [DATE]
   [  ] Lump sum due on [DATE]
   [  ] Other: [DESCRIBE]

6. LATE PAYMENT: A fee of $[AMOUNT] or [PERCENTAGE]% applies after [DAYS] days.
7. PREPAYMENT: [  ] Allowed without penalty [  ] Subject to [PERCENTAGE]% penalty
8. COLLATERAL (if secured):
   Description: [DESCRIBE COLLATERAL]
9. DEFAULT: Upon default, Lender may declare entire balance due immediately.
10. USURY COMPLIANCE: Interest shall not exceed the maximum rate permitted by Tennessee law.

This agreement is governed by Tennessee law (TN Statutes).

LENDER: _____________________ DATE: _____
BORROWER: _____________________ DATE: _____

Where to File Your Loan Agreement in Tennessee

Visit your local County Clerk office to file or notarize your Loan Agreement.

Tennessee County Clerk

Tennessee Capital

Main Government Building, Tennessee

District County Clerk

Tennessee Metro Area

County Courthouse, TN

Loan Agreement Costs in Tennessee

Estimated fees and processing times

Fee TypeCostNotes
Notary Fee$5-$15 (if required)Tennessee standard rate: $5
Filing FeeVaries by stateState registration (if applicable)
Processing Time1-3 business daysTypical turnaround in Tennessee
Sales Tax7%Tennessee base rate (local taxes may apply)
Witness Requirement2 witnessesTennessee requires multiple witnesses
Our TemplateFREEDownload instantly, no cost
Fees shown are Tennessee-specific estimates. Contact your local office for exact pricing.
SMJ
Reviewed & Fact-Checked

Sarah Mitchell, J.D.

Legal Document Specialist

Licensed Attorney, 15+ years experience

Specializes in contract law and legal document preparation

This Loan Agreement template for Tennessee has been reviewed for accuracy and legal compliance.

Last reviewed: March 2026

Tennessee Loan Agreement Legal Guide

According to Tennessee laws, this agreement holds legal weight once properly signed and notarized, ensuring compliance with state regulations.

For Tennessee (TN) residents, this Loan Agreement is governed by Tennessee State Code. Important details: sales tax at 7%, notary costs of $5, and a requirement for 2 witnesses. The document has indefinite validity once properly executed.

This document offers comprehensive legal protection tailored specifically to Tennessee's unique statutory framework.

borrowerlenderinterest raterepayment termscollateraldefaultloan terms
A properly executed Loan Agreement in Tennessee protects all parties involved and ensures compliance with TN state law. Below, we cover the critical steps, common pitfalls, and state-specific rules you should be aware of before signing.

Smart Practices for TN Compliance

Tennessee has specific rules that differ from neighboring states. Always verify your document against current TN statutes, especially if you're using a template from a previous year. Laws change, and what was valid last year in Tennessee may need updating for 2026.

Legal Validity & Enforcement

Once properly executed, your Loan Agreement is legally binding in Tennessee and enforceable in TN courts. The document remains valid indefinitely unless revoked or superseded. Tennessee courts generally uphold properly executed documents, provided they comply with applicable TN statutes.

Completing Your Loan Agreement

The process in Tennessee is straightforward but detail-oriented. Begin with the header information, proceed through each section methodically, and ensure all TN-required fields are completed. Tennessee courts take document completeness seriously — missing information can delay or invalidate your filing.

Legal Standards in Tennessee

Under TN state code, your Loan Agreement must contain several mandatory elements. Tennessee courts have consistently held that documents missing key provisions — such as proper identification of parties or adequate descriptions — may be challenged or voided entirely.

FAQ: Loan Agreement in Tennessee

Is a Loan Agreement required in Tennessee?

Yes, in Tennessee, a Loan Agreement is required for most transactions of this type. Under Tennessee State Code, the document must include all parties' information, be signed, and witnessed by 2 individuals. Failure to use a proper Loan Agreement may result in legal complications.

Does a Loan Agreement need to be notarized in Tennessee?

Notarization requirements in Tennessee (TN) vary by transaction type. Notary fees in the state typically range from $5. While not always mandatory, notarization adds an extra layer of legal protection and is recommended for high-value transactions.

What are the tax implications of a Loan Agreement in Tennessee?

Tennessee has a base sales tax rate of 7%. Depending on the type of transaction documented in your Loan Agreement, additional local taxes may apply. Consult with a Tennessee tax professional for specific guidance on your situation.

What is the difference between a loan agreement and a promissory note?

A promissory note is a simple promise to repay, signed only by the borrower. A loan agreement is a more detailed contract signed by both parties, covering terms like collateral, representations, covenants, and default remedies.

Can I lend money to a friend without a written agreement?

While verbal agreements can be legally binding, they are extremely difficult to enforce. A written loan agreement protects both parties by clearly documenting the amount, interest rate, repayment terms, and consequences of default.

What interest rate can I charge on a personal loan?

Interest rates are limited by state usury laws, which vary significantly. Some states cap rates at 6-10%, while others allow higher rates. Charging above the legal limit can void the loan and result in penalties.

Tennessee Loan Agreement Requirements

Review the following requirements to ensure your Loan Agreement is legally valid in Tennessee.

Notarization required
2 witnesses must sign
Vehicle identification number (VIN) required
Odometer disclosure mandatory
Buyer and seller signatures required
Purchase price must be stated
Date of sale required
Blue or black ink only
Electronic signatures accepted
County clerk filing required

Tennessee Notarization

Tennessee requires 2 witnesses and notarization may be mandatory. Fees typically range from $5.

Before You Sign

Review all information carefully. In Tennessee, a 7% sales tax may apply.

Legal Protection

Keep copies of all signed documents. Tennessee law requires all parties to receive copies of executed documents.

Tennessee Filing Deadlines

Check Tennessee deadlines for filing or recording this document with the appropriate county clerk's office.

Document Information

Document
Loan Agreement
State
Tennessee (TN)
Category
Financial
Format
PDF / Word / Print
Cost
100% Free
Sales Tax
7%
Notary Fee
$5

Tennessee Legal Requirements

Governing Statute:

State Law

  • Consult with a licensed attorney for specific requirements

Legal Disclaimer

This template is for informational purposes only and does not constitute legal advice. Laws in Tennessee may change. Consult a licensed attorney for advice specific to your situation.