Rate is based on a ceiling of 4% over the weekly average prime loan rate
Nashville – Tennessee Department of Financial Institutions Commissioner Greg Gonzales announced the maximum effective formula interest rate, or the rate on which the actual return on investment and rate of interest on a loan is calculated, considering compounding over a period, in Tennessee is 11.50%. The rate is based on a ceiling of 4% over the weekly average prime loan rate of 7.50% as published by the Federal Reserve on January 23, 2023.
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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