Tennessee Maximum Interest Rate Announcement

TN TDFI News

Published March 24th, 2026

Detected March 25th, 2026

Summary

The Tennessee Department of Financial Institutions announced that the maximum effective formula rate of interest in Tennessee is 10.75 percent per annum, effective March 24, 2026. This rate is set by state law and is based on the weekly average prime loan rate plus a ceiling of 4 percent.

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What changed

Commissioner Greg Gonzales of the Tennessee Department of Financial Institutions has announced the weekly formula rate of interest for Tennessee, setting it at 10.75 percent per annum as of March 24, 2026. This rate is derived from the Federal Reserve's published weekly average prime loan rate of 6.75 percent, with a statutory ceiling of 4 percent above it. The rate will remain in effect until the Federal Reserve's average prime loan rate changes.

This announcement is a routine weekly update required by Tennessee Public Acts of 1983, Chapter 464, which regulates interest rates in the state. Financial institutions operating in Tennessee should note this maximum rate for their lending activities. No immediate action is required beyond acknowledging the current rate, as this is a standard announcement based on an established formula.

Source document (simplified)

COMMISSIONER GONZALES ANNOUNCES WEEKLY FORMULA RATE MARCH 24, 2026

Tuesday, March 24, 2026 | 02:02pm NASHVILLE--Commissioner of Financial Institutions Greg Gonzales announced today that the maximum effective formula rate of interest in Tennessee is 10.75 percent per annum.

The rate is based on a ceiling of 4 percent over the weekly average prime loan rate of 6.75 percent as published by the Federal Reserve on March 23, 2026.

Commissioner Gonzales said the rate remains in effect until the average prime loan rate as announced by the Federal Reserve Bank changes.

Chapter 464, Public Acts of 1983, the legislation regulating interest rates in Tennessee, requires that the commissioner of Financial Institutions make an announcement weekly of the formula rate of interest.

Alica Owen
Public Information Officer
Tennessee Department of Financial Institutions
(615) 289-4738