NASHVILLE—The Tennessee Department of Financial Institutions, led by Commissioner Greg Gonzales, has announced the maximum effective formula rate of interest for the state. As of December 30, 2024, the rate is set at 11.50 percent per annum.
This rate is determined by adding a ceiling of 4 percent to the weekly average prime loan rate, which currently stands at 7.50 percent as published by the Federal Reserve. Commissioner Gonzales stated that this rate will remain in effect until there is a change in the average prime loan rate as announced by the Federal Reserve Bank.
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This announcement is in accordance with Chapter 464, Public Acts of 1983, which mandates that the commissioner of Financial Institutions provide a weekly update on the formula rate of interest in Tennessee.
For further information, you may contact Alica Owen, Public Information Officer at the Tennessee Department of Financial Institutions, at (615) 289-4738.
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Tennessee Sets New Interest Rate at 11.65%
Tennessee’s Department of Financial Institutions, led by Commissioner Greg Gonzales, has set the state’s maximum effective formula interest rate at 11.65% as of December 23, 2024. This rate is based on a calculation of 4% above the current weekly average prime loan rate of 7.65% as reported by the Federal Reserve. The rate will remain in effect until further changes are announced by the Federal Reserve. For more details, contact Alica Owen at the Tennessee Department of Financial Institutions.