Weekly Formula Rate of Interest Set at 10.75 Percent
Summary
Commissioner Greg Gonzales of the Tennessee Department of Financial Institutions announced the maximum effective formula rate of interest at 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 13, 2026. The rate remains in effect until the Federal Reserve changes the average prime loan rate. Chapter 464, Public Acts of 1983 requires weekly announcement of the formula rate.
What changed
The Tennessee Department of Financial Institutions published its weekly formula rate announcement establishing the maximum permissible interest rate at 10.75 percent per annum. The rate is calculated as 4 percent over the weekly average prime loan rate of 6.75 percent published by the Federal Reserve.
This announcement applies to lenders operating in Tennessee and serves as a reference point for compliance with state usury limits. No immediate action is required beyond awareness of the current rate. Lenders should continue monitoring weekly announcements for any changes to the formula rate based on Federal Reserve prime rate updates.
What to do next
- Reference the formula rate when setting interest rates to ensure compliance with Tennessee usury limits
- Monitor future weekly announcements for changes to the prime loan rate
Archived snapshot
Apr 15, 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 14, 2026
Tuesday, April 14, 2026 | 01:19pm 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 13, 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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