Chattanooga, TN – Tennessee Department of Financial Institutions Commissioner Greg Gonzales announced that the state’s maximum effective formula rate of interest is 11.65% per annum.
The rate is calculated based on a ceiling of 4% above the weekly average prime loan rate of 7.65%, as published by the Federal Reserve on December 23, 2024.
Commissioner Gonzales stated that this rate will remain in effect until the Federal Reserve Bank announces a change in the average prime loan rate.
The regulation, mandated under Chapter 464 of the Public Acts of 1983, requires the commissioner to announce the formula rate of interest weekly.
This ensures transparency and compliance with Tennessee’s financial legislation.