A bill passed by the Tennessee General Assembly raised the cap for the amount a person can borrow using a short term loan, the Republic reports. However, the limit increase coincides with an interest fee hike.
The bill, sponsored by the Republican Senator Bill Ketron, raises the short term loan limit from a single lender from $200 to $500, while increasing the fee limit from $30 to $75. State resident Kelly Newell doesn't believe the limit change will make much of a difference. "I don't think the limit matters," said Newell, as quoted by the news source. "Some people are going to borrow what (lenders will) allow because they think something is going to magically come along, and they won't get into all that debt." More people typically turn to short term lenders during a down economy, since more citizens are looking for quick cash. The Nashville Ledger reports that obtaining a short term loan is becoming increasingly easy. A Google search for the terms "short term loans Nashville" returns a website that can locate a lender in any zip code across the country.