Tennessee's cap on interest rates is now set to 11.50 percent, as announced by the state's Department of Financial Institutions. In a statement published on May 13th, Commissioner Greg Gonzales outlined the update, citing the formula that pegs the rate at 4 percent above the week's average prime loan rate, which the Federal Reserve reported as being 7.50 percent on May 12th.
The decision by Commissioner Gonzales to set the rate at this level remains in effect until a change is noted in the prime loan rate by the Federal Reserve Bank. Tennessee law specifies the need for weekly updates of this financial metric, requiring the diligence of the department to stay ahead of economic shifts.
While the rate of 11.50 percent holds, borrowers and lenders within Tennessee's boundaries are advised to take this cost of borrowing into account. Such financial parameters not only influence personal loans and credit card rates but could also ripple through to affect business loans and, ultimately, the economic health of the region.
According to the legislation enacted in Chapter 464, Public Acts of 1983, the task of adjusting and announcing Tennessee's formula rate of interest falls squarely on the shoulders of the Financial Institutions' Commissioner—a role currently occupied by Gonzales. His office will continue to monitor and adjust the rate weekly in alignment with borrowing trends and directives from the federal level, a process indispensably tied to the broader landscapes of commerce and investment across the state.
For more detailed information on the current interest rates and their implications for financial planning and budgeting, Tennessee residents and businesses can refer to the department's official announcement and subsequent weekly updates.
