NASHVILLE—Tennessee Department of Financial Institutions Commissioner Greg Gonzales announced that the maximum effective formula rate of interest in Tennessee is now 12.50 percent per annum. This rate is determined 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 June 10, 2024.
Commissioner Gonzales stated that this rate will remain in effect until the Federal Reserve Bank announces any changes to the average prime loan rate.
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According to Chapter 464 of the Public Acts of 1983, which regulates interest rates in Tennessee, the Commissioner of Financial Institutions is required to make a weekly announcement regarding the formula rate of interest.
For more information, you can contact Alica Owen, Public Information Officer at the Tennessee Department of Financial Institutions, at (615) 289-4738.
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