The Tennessee Department of Financial Institutions, led by Commissioner Greg Gonzales, has declared a new maximum effective formula rate of interest. As of April 30, 2024, the rate will be established at 12.50 percent per annum. This adjustment is directly linked to the current weekly average prime loan rate of 8.50 percent, as recorded by the Federal Reserve on April 29, 2024, with an added ceiling of 4 percent.
Commissioner Gonzales emphasized that this rate will be maintained until there is a change in the average prime loan rate as disclosed by the Federal Reserve Bank. The determination of this rate is in accordance with Chapter 464, Public Acts of 1983, which mandates the commissioner of Financial Institutions to update and announce the formula rate of interest on a weekly basis.
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For further information regarding this announcement or any inquiries, Alica Owen, the Public Information Officer for the Tennessee Department of Financial Institutions, is available for contact at (615) 289-4738. This update is significant for financial institutions and borrowers in Tennessee, signifying the ongoing adjustments to the state’s financial regulatory environment in response to national economic conditions.
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