Tennessee Industrial Loan and Thrift Bond Guide
If you’re applying for an industrial loan and thrift company certificate of registration in Tennessee, you’ll need to file a surety bond.
Bond Overview
- Purpose: To compensate any individual harmed by a lender’s noncompliance
- Who Needs It: All industrial loan and thrift companies in Tennessee
- Regulating Body: The Department of Financial Institutions, Compliance Division
- Required Amount: $50k for most applicants, $200k if offering mortgage loans
- Premium Rate: Credit-based, typically 0.5–3%
Use this guide to understand the bonding process and get your free quote.
What Is an Industrial Loan and Thrift Bond?
The Tennessee industrial loan and thrift company bond protects the public if a lender violates the Industrial Loan and Thrift Companies Act.
This type of license surety bond creates financial security to repay any losses due to license violations.
Who Needs an Industrial Loan and Thrift Bond?
Any person or business that makes loans and charges interest in Tennessee, including endorsement companies that arrange non-mortgage loans, must register with the state and file this surety bond.
What Bond Amount Do I Need?
Any applicant registering as an industrial loan and thrift must file a $50,000 surety bond. However, if you plan to make residential mortgage loans, you need a $200,000 surety bond.
You must maintain an active bond for at least 24 months after your certificate of registration is expired, revoked, or suspended for legal compliance.
How Much Do Industrial Loan and Thrift Bonds Cost in Tennessee?
Tennessee industrial loan and thrift companies often pay $500 for $50,000 bond coverage.
Exact rates can vary from 0.5% to 10% of the total bond amount based on the personal credit score of owners.
Apply for your free quote now. We’ll deliver your no-obligation invoice within one business day or less.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Tennessee Industrial Loan and Thrift Bond Work?
An industrial loan and thrift bond creates a legal contract between these three parties:
- Principal: The lending company filing the bond
- Obligee: The Department of Financial Institutions, Compliance Division
- Surety: The provider issuing the bond
As the principal, you are responsible for upholding all laws and lending regulations. If you don’t, consumers can file claims on the bond for reimbursement.
The surety ensures claimants are paid promptly then seeks repayment from the principal.
How Do I Get an Industrial Loan and Thrift Bond in Tennessee?
SuretyBonds.com makes the bonding process fast and easy for industrial loan and thrift companies. Follow these three simple steps:
- Apply for a free quote from SuretyBonds.com
- Sign the required documents
- Complete your purchase online
That’s it! We’ll issue and upload the bond directly to the NMLS on your behalf.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit.
We work with a variety of top surety markets nationwide to match you with the right provider at the best price available.
Apply now to see if you qualify. You can also see how credit score may impact your $50,000 bond rate here.
How Do I Renew My Industrial Loan and Thrift Bond?
Tennessee industrial loan and thrift bonds are continuous until canceled. That means all you have to do is pay your annual renewal invoice to stay active.
How to Start an Industrial Loan and Thrift Company in Tennessee
The Tennessee Department of Financial Institutions oversees industrial loan and thrift registrations. To qualify for registration, you must
- Demonstrate experience and good character
- Prove net worth of $25,000 for each place of business (individuals or partnerships only)
- Be organized and authorized to operate under the TN Business Corporation Act (corporations only)
After verifying you meet the eligibility requirements, follow these steps to get your certificate of registration:
- Submit an application through the NMLS
- Pay the supervision fee
- Pass the Commissioner’s investigation
- File a surety bond in the required amount
- Complete any education and testing if required
- Consent to criminal history checks and fingerprinting if requested
How to Renew Your Registration
Certificates of registration renew annually on December 31. Pay the annual fee and submit a renewal application between November 1 and December 31 to maintain an active license.
Be sure to renew your surety bond policy as well.
