Tennessee Announces Weekly Formula Interest Rate for April 2024

The maximum effective formula interest rate in Tennessee is set at 12.50 percent.

NASHVILLE–Tennessee Department of Financial Institutions Commissioner Greg Gonzales announced today that the maximum effective formula rate of interest in Tennessee is 12.50 percent per annum.

The rate is based on a ceiling of 4 percent over the weekly average prime loan rate of 8.50 percent as published by the Federal Reserve on April 1, 2024.

Commissioner Gonzales said the rate remains in effect until the average prime loan rate as announced by the Federal Reserve Bank changes.

Chapter 464, Public Acts of 1983, the legislation regulating interest rates in Tennessee, requires that the commissioner of Financial Institutions make an announcement weekly of the formula rate of interest.

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Tennessee Sets Maximum Home Loan Interest Rate

The Commissioner of Financial Institutions has announced that the maximum effective interest rate for home loans in Tennessee for May 2024 is 8.38%, set by law and equal to four percentage points above the index of market yields of long-term government bonds adjusted to a 30-year maturity by the U.S. Department of the Treasury.