Bill Approved for Payday Loan Companies to Charge 36% Interest

A bill allowing interest rates to increase to 36% at certain money-lending places is now headed to Tennessee Gov. Bill Lee's desk.

The bill would allow any amount of $100 or more to have an effective borrowing rate of 36%.

The bill passed in the Senate along party lines, but in the House, a few Republicans voted against the measure. The vote in the House was 61-26-8.

The political action committees of payday lending companies in Tennessee make substantial donations to lawmakers.