Chattanooga, TN – Tennessee Department of Financial Institutions Commissioner Greg Gonzales announced today that the maximum effective formula rate of interest in Tennessee is 11.75 percent per annum.
This rate is determined by adding a ceiling of 4 percent to the weekly average prime loan rate, which was 7.75 percent as published by the Federal Reserve on November 25, 2024.
Commissioner Gonzales stated that the rate will remain in effect until there is a change in the average prime loan rate as announced by the Federal Reserve Bank.
As outlined in Chapter 464, Public Acts of 1983, the legislation regulating interest rates in Tennessee, the commissioner is required to announce the formula rate of interest weekly.