Tennessee Maximum Interest Rate Announcement
Summary
The Tennessee Department of Financial Institutions announced the maximum effective formula rate of interest for the week of February 24, 2026, is 10.75%. This rate is set weekly based on the Federal Reserve's prime loan rate.
What changed
The Tennessee Department of Financial Institutions, through Commissioner Greg Gonzales, has announced the weekly maximum effective formula rate of interest for Tennessee, setting it at 10.75% per annum for the week of February 24, 2026. This rate is calculated by adding 4% to the weekly average prime loan rate, which was 6.75% as published by the Federal Reserve on February 23, 2026.
This announcement is a routine weekly update required by state law. Regulated entities, particularly financial institutions, should be aware of this rate for any applicable lending activities. No specific compliance actions are required beyond noting the current rate, as it is subject to change weekly based on the prime loan rate.
Source document (simplified)
COMMISSIONER GONZALES ANNOUNCES WEEKLY FORMULA RATE FEBRUARY 24, 2026
Tuesday, February 24, 2026 | 12:28pm 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 February 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
Related changes
Source
Classification
Who this affects
Taxonomy
Browse Categories
Get Banking & Finance alerts
Weekly digest. AI-summarized, no noise.
Free. Unsubscribe anytime.
Get alerts for this source
We'll email you when TN TDFI News publishes new changes.