Tennessee Department of Financial Institutions · TN
COMMISSIONER GONZALES ANNOUNCES WEEKLY FORMULA RATE AUGUST 18, 2026
August 18, 2026
Summary
Tennessee's Commissioner of Financial Institutions announced the weekly maximum effective formula rate of interest at 10.75% per annum, based on 4% over the Federal Reserve's weekly average prime loan rate of 6.75%. This rate applies to all consumer loans made in Tennessee and remains in effect until the prime rate changes. Lenders must ensure loan interest rates do not exceed this ceiling per Chapter 464, Public Acts of 1983.
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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 August 17, 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
Common questions
- What does "COMMISSIONER GONZALES ANNOUNCES WEEKLY FORMULA RATE AUGUST 18, 2026" cover?
- Tennessee's Commissioner of Financial Institutions announced the weekly maximum effective formula rate of interest at 10.75% per annum, based on 4% over…
- Which agency issued this update?
- This update was issued by Tennessee Department of Financial Institutions.
- When was it published?
- It was published on August 18, 2026.