Rate remains in effect until prime loan rate changes
Nashville – The maximum effective formula rate of interest in Tennessee is now 12.5% per annum. The rate is based on a ceiling of 4% over the weekly average prime loan rate of 8.5% as published by the Fed Aug. 21.
Commissioner Greg Gonzales said the rate remains in effect until the average prime loan rate as announced by the Fed Bank changes.
The legislation regulating interest rates in Tennessee requires that the commissioner of Financial Institutions make an announcement weekly of the formula rate of interest.