Tennessee Department of Financial Institutions Commissioner Greg Gonzales has announced that the maximum effective formula rate of interest for the state is now 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 was recorded at 7.50 percent as of February 18, 2025, by the Federal Reserve.
The newly established rate will remain valid until there is a change in the average prime loan rate as announced by the Federal Reserve Bank. This adjustment is in accordance with Chapter 464 of the Public Acts of 1983, which mandates the weekly announcement of the formula rate of interest by the Commissioner of Financial Institutions.
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For further information, Alica Owen, the Public Information Officer for the Tennessee Department of Financial Institutions, can be contacted at (615) 289-4738.
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