Chattanooga, TN – Tennessee Department of Financial Institutions Commissioner Greg Gonzales announced that the state’s maximum effective formula rate of interest is 11.65 percent per annum.
This rate is calculated based on a ceiling of 4 percent above the weekly average prime loan rate of 7.65 percent, as published by the Federal Reserve on December 23, 2024.
Commissioner Gonzales confirmed that this rate will remain in effect until the Federal Reserve announces a change in the average prime loan rate.
Under Chapter 464 of the Public Acts of 1983, which governs interest rates in Tennessee, the commissioner is required to announce the formula rate of interest on a weekly basis.