NASHVILLE—The Tennessee Department of Financial Institutions has announced the maximum effective formula rate of interest for the state as 11.50 percent per annum. This decision was shared by Commissioner Greg Gonzales, reflecting the latest adjustments based on the Federal Reserve’s published data.
The rate determination is derived from a ceiling which adds 4 percent to the weekly average prime loan rate. As of January 21, 2025, the prime loan rate stands at 7.50 percent, as published by the Federal Reserve. The announced maximum rate will remain in effect until any further changes in the average prime loan rate are made by the Federal Reserve Bank.
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The weekly announcement of the formula rate of interest is a requirement under Chapter 464 of the Public Acts of 1983, which regulates interest rates within Tennessee.
For more information, individuals may contact Alica Owen, Public Information Officer at the Tennessee Department of Financial Institutions, at (615) 289-4738.
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