Most states have usury laws (usually statutes) governing the amount of interest that can be charged on a loan. Usury laws vary from state to state, but the elements of a usury claim are generally: (1) a loan of money; (2) an absolute obligation to repay the principal; and (3) the exaction of a greater compensation than allowed by law for the use of the money by the borrower.

And interest means compensation for the use, forbearance, or detention of money. The term does not include time price differential, regardless of how it is denominated. The term does not include compensation or other amounts that are determined or stated by law not to constitute interest, or that are permitted to be contracted for, charged, or received in addition to interest in connection with an extension of credit.

Service charges, finance charges, and discount points are generally considered interest for purposes of usury. But contingent or uncertain charges are generally not considered interest.

In Tennessee, usury laws are codified under Title 47, Chapter 14 of the Tennessee Code Annotated. These laws set the maximum rates of interest that can be charged on various types of loans. As of the current regulations, the general usury limit is 10% per annum unless a different rate is contracted for in writing, in which case the maximum rate is the lesser of 24% per annum or four percentage points above the average prime loan rate. Loans for personal, family, or household purposes have different interest rate limits, and the maximum rate cannot exceed the applicable formula rate set by the state. The elements of a usury claim in Tennessee include (1) the existence of a loan of money, (2) an absolute obligation to repay the principal amount, and (3) the lender charging an interest rate exceeding the legal limit. Charges that are considered interest include service charges, finance charges, and discount points. However, contingent or uncertain charges are typically not regarded as interest under usury laws. It's important to note that certain types of loans, such as those made by licensed lenders or under specific statutes, may be exempt from these general usury limits.