Tennessee Sets New Maximum Interest Rate at 12.50%

Commissioner Gonzales announces a maximum interest rate of 12.50% in Tennessee.

The Tennessee Department of Financial Institutions has announced a new maximum effective formula rate of interest for the state. Commissioner Greg Gonzales revealed that as of March 26, 2024, the rate will be set at 12.50 percent per annum. This decision comes following the weekly average prime loan rate of 8.50 percent as published by the Federal Reserve on March 25, 2024. Consequently, the new rate will include a ceiling of 4 percent over the current prime rate.

Commissioner Gonzales emphasized that this rate will remain in place until there is a change in the average prime loan rate as announced by the Federal Reserve Bank. This adjustment is in line with Chapter 464, Public Acts of 1983, which mandates that the commissioner of Financial Institutions announce weekly the formula rate of interest in Tennessee.

For more information, the public can contact Alica Owen, the Public Information Officer at the Tennessee Department of Financial Institutions, at (615) 289-4738.

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