Tennessee's cost of borrowing just got a number, and it's 12.00 percent per annum. The latest announcement came directly from the desk of Commissioner Greg Gonzales of the Tennessee Department of Financial Institutions. According to the official release on the department's website, this figure is calculated using a 4 percent margin above the weekly average prime loan rate of 8.00 percent as reported by the Federal Reserve on the previous day, October 7.
This news, announced today, is significant for Tennessee residents and business owners looking to borrow money. Published by the Tennessee Department of Financial Institutions, the weekly formula rate serves as the guiding star for lenders in the state, dictating the maximum interest they can charge. Based on legislation from Public Acts of 1983, Commissioner Gonzales is tasked with the weekly ritual of recalibrating this rate in response to the ebb and flow of the prime lending rate, which now stands at 8.00 percent.
Staying true to the letter of the law, this interest rate ceiling is a mandate of Chapter 464. It's not just a figure pulled out of thin air; it reflects a carefully constructed framework designed to keep the lending market fair yet flexible. "The rate remains in effect until the average prime loan rate as announced by the Federal Reserve Bank changes," said Gonzales in the announcement.
