Commissioner of the Tennessee Department of Financial Institutions unveiled that the maximum effective formula rate of interest in the state stands at 12.50 percent per annum

Chattanooga, TN – According to Greg Gonzales, this rate is determined by adding a ceiling of 4 percent to the weekly average prime loan rate, which currently sits at 8.50 percent as per the Federal Reserve’s publication on May 13, 2024.

Commissioner Gonzales emphasized that this rate will persist until any alterations in the average prime loan rate, as announced by the Federal Reserve Bank.

As stipulated in Chapter 464, Public Acts of 1983, the legislation governing interest rates in Tennessee mandates that the Commissioner of Financial Institutions issues a weekly announcement regarding the formula rate of interest.