Weekly Formula Rate of Interest Announcement - April 2026
Summary
Commissioner Greg Gonzales announced Tennessee's weekly maximum formula rate of interest at 10.75% per annum, based on a 4% ceiling over the Federal Reserve's weekly average prime loan rate of 6.75%. This rate applies under Chapter 464, Public Acts of 1983, which mandates weekly formula rate announcements.
What changed
The Tennessee Department of Financial Institutions published its weekly formula rate of interest at 10.75% per annum, effective April 7, 2026. The rate derives from the Federal Reserve's weekly average prime loan rate of 6.75% plus a 4% statutory ceiling, as established by Chapter 464, Public Acts of 1983.
Banks and regulated lenders extending consumer credit subject to Tennessee's interest rate formula must ensure their lending rates comply with this 10.75% ceiling until the Federal Reserve announces a change in the prime loan rate triggering a new calculation. Compliance officers should track weekly TN TDFI announcements to identify formula rate adjustments.
What to do next
- Monitor for weekly formula rate updates from TN TDFI
- Apply the 10.75% ceiling to consumer loans subject to Tennessee's formula rate law
- Verify compliance with interest rate limits under Chapter 464, Public Acts of 1983
Archived snapshot
Apr 8, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
COMMISSIONER GONZALES ANNOUNCES WEEKLY FORMULA RATE APRIL 7, 2026
Tuesday, April 07, 2026 | 09:43am 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 April 6, 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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