Tennessee Maximum Interest Rate Announcement
Summary
The Tennessee Department of Financial Institutions announced the weekly formula interest rate for March 3, 2026, setting the maximum effective rate at 10.75% per annum. This rate is based on the Federal Reserve's weekly average prime loan rate and is subject to change.
What changed
Commissioner Greg Gonzales of the Tennessee Department of Financial Institutions has announced the weekly formula rate of interest, effective March 3, 2026. The maximum rate is set at 10.75% per annum, calculated as 4% above the Federal Reserve's published weekly average prime loan rate of 6.75% as of March 2, 2026. This announcement is a statutory requirement for the Commissioner to make weekly.
Financial institutions operating in Tennessee should note this updated maximum interest rate. While this announcement itself does not impose new direct obligations, it informs lenders of the legally permissible ceiling for interest rates. The rate will remain in effect until the Federal Reserve's average prime loan rate changes, at which point a new announcement will be made.
Source document (simplified)
COMMISSIONER GONZALES ANNOUNCES WEEKLY FORMULA RATE MARCH 3, 2026
Tuesday, March 03, 2026 | 10:01am 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 2, 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
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