Rate remains effective until prime loan rate changes

Nashville – The maximum effective formula rate of interest in Tennessee is 11.75%.

The rate is based on a ceiling of 4% over the weekly average prime loan rate of 7.75% as published by the Federal Reserve on March 20. Commissioner Gonzales said the rate remains in effect until the average prime loan rate as announced by the Federal Reserve Bank changes.

Chapter 464, Public Acts of 1983, the legislation regulating interest rates in Tennessee, requires that the commissioner of Financial Institutions make an announcement weekly of the formula rate of interest.

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