Tennessee's money borrowers might feel a bit of a pinch with the latest announcement from the Commissioner of Financial Institutions, Greg Gonzales. Today, it was revealed that the maximum effective formula rate of interest for the state would be set at 11.50 percent per annum. Gonzales noted this new rate is calculated as a mark-up of 4 percent above the current average prime loan rate which the Federal Reserve reported as 7.50 percent yesterday, as per the department's press release.
Each week, Tennesseans receive an updated figure that could influence their financial outlook, a requirement rooted in Chapter 464 of the Public Acts of 1983. This decades-old law ensures the number isn’t kept behind closed doors—it must be publicly released for all to see or hear.
Alica Owen, the Public Information Officer for the Tennessee Department of Financial Institutions, provided the public with these details in a recent post on the department's website. The Commissioner stressed the importance of tracking changes by reminding that the formula rate will stick around until "the average prime loan rate as announced by the Federal Reserve Bank changes." While the fluctuating prime rate can often feel as elusive as the wind, at least Tennesseans know that their rate won't move until the Fed makes its next move.
For more information or to get a grip on the current state of financial affairs in Tennessee, interested parties can view the announcement on the Tennessee Department of Financial Institutions website.
