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 today that the maximum effective formula rate of interest in Tennessee is 12.25% per annum. The rate is based on a ceiling of 4% over the weekly average prime loan rate of 8.25% as published by the Federal Reserve on May 22.
“The rate remains in effect until the average prime loan rate as announced by the Federal Reserve Bank changes,” Commissioner Gonzales said
The legislation regulating interest rates in Tennessee, requires that the commissioner of Financial Institutions make an announcement weekly of the formula rate of interest.