Chattanooga, TN – According to the statement, Commissioner Greg Gonzales of the Tennessee Department of Financial Institutions announced that the state’s maximum effective formula rate of interest is set at 11.90 percent per annum.
This rate is derived from a ceiling of 4 percent above the weekly average prime loan rate of 7.90 percent, as reported by the Federal Reserve on November 12, 2024.
The 11.90 percent rate will stay in effect until a new prime loan rate is issued by the Federal Reserve.
Under Chapter 464, Public Acts of 1983, Tennessee law mandates that the commissioner of Financial Institutions provide weekly updates on the formula rate of interest.