The Tennessee Department of Financial Institutions has announced a new maximum effective formula rate of interest. Commissioner Greg Gonzales revealed that the rate is set at 11.90 percent per annum. This rate is determined based on a ceiling of 4 percent above the weekly average prime loan rate, which currently stands at 7.90 percent as reported by the Federal Reserve on November 12, 2024.
Commissioner Gonzales clarified that this rate will remain effective until the Federal Reserve Bank updates the average prime loan rate. This announcement is in accordance with Chapter 464 of the Public Acts of 1983, which mandates the commissioner of Financial Institutions to declare the formula rate of interest on a weekly basis.
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For further information, individuals can contact Alica Owen, Public Information Officer at the Tennessee Department of Financial Institutions, at (615) 289-4738.
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