Tennessee Department of Financial Institutions Commissioner announced that the maximum effective formula rate of interest in Tennessee is 12.50 percent per annum

Chattanooga, TN – According to the state officials, the Tennessee Department of Financial Institutions Commissioner Greg Gonzales announced that the maximum effective formula rate of interest in Tennessee is 12.50 percent per annum.

This rate is based on a ceiling of 4 percent above the weekly average prime loan rate of 8.50 percent, as published by the Federal Reserve on August 12, 2024.

Commissioner Gonzales stated that this rate will remain in effect until the Federal Reserve Bank updates the average prime loan rate. Under Chapter 464, Public Acts of 1983, the commissioner is required to announce the formula rate of interest weekly.