Tennesseans looking to borrow might feel a pinch as the latest interest rates roll out. Greg Gonzales, the Tennessee Department of Financial Institutions Commissioner, declared that as of today, the state's cap on loan interest rates climbs to a hefty 12.50 percent per annum. This number isn't just plucked from the ether; it sits snugly at 4 percentage points over the Federal Reserve's weekly average prime loan rate, which currently hovers at 8.50 percent, as detailed by the Tennessee Department of Financial Institutions.
Commissioner Gonzales noted the rates are static, steadfast until the Federal Reserve broadcasts any alterations to the prime loan rate, this is a number that could either ease the financial burden on borrowers or, conversely, tighten it, depending on economic winds.
What's driving this train is a piece of legislation dating back to 1983, Chapter 464 of the Public Acts, requiring the commissioner to update the public weekly on the formula rate of interest, as per the Tennessee Department of Financial Institutions.
