NASHVILLE — Greg Gonzales, the Commissioner of the Tennessee Department of Financial Institutions, has announced that the maximum effective formula rate of interest in Tennessee has been set at 11.50 percent per annum. This announcement follows a ceiling of 4 percent over the weekly average prime loan rate of 7.50 percent, which was published by the Federal Reserve on February 10, 2025.
Commissioner Gonzales stated that this rate will remain effective until there is a change in the average prime loan rate announced by the Federal Reserve Bank. This is in accordance with Chapter 464, Public Acts of 1983, which mandates that the commissioner of Financial Institutions must announce the formula rate of interest on a weekly basis.
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For further information, individuals may contact Alica Owen, the Public Information Officer at the Tennessee Department of Financial Institutions, at (615) 289-4738.
More information can also be found on their official website: Tennessee Department of Financial Institutions.
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