The Tennessee Department of Financial Institutions has announced the new maximum effective formula rate of interest, set at 11.35 percent per annum. Commissioner of Financial Institutions Greg Gonzales reported the update, as published on the Tennessee Department of Financial Institutions website.
The rate is calculated at 4 percent above the weekly average prime loan rate, which was 7.35 percent according to the Federal Reserve yesterday. Under Chapter 464, Public Acts of 1983, the Commissioner is required to provide weekly updates on interest rate changes.
This rate will remain in effect until the Federal Reserve announces a change in the average prime loan rate. Updates are released regularly by the department through Public Information Officer Alica Owen.
