The Tennessee Department of Financial Institutions, under the guidance of Commissioner Greg Gonzales, has announced a new maximum effective formula rate of interest for the state. As of March 19, 2024, the rate will be set at 12.50 percent per annum. This adjustment comes as a result of setting the rate at 4 percent above the weekly average prime loan rate of 8.50 percent, as published by the Federal Reserve on March 18, 2024.
This announcement ensures that the rate will remain in effect until there is a change in the average prime loan rate as announced by the Federal Reserve Bank. This mechanism for determining the maximum effective formula rate of interest is in accordance with Chapter 464, Public Acts of 1983. The legislation requires the commissioner of Financial Institutions to make a weekly announcement regarding the formula rate of interest, ensuring transparency and consistency in financial operations within the state.
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For further information, individuals and institutions can contact Alica Owen, the Public Information Officer at the Tennessee Department of Financial Institutions, at (615) 289-4738.
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