Tennessee Department of Financial Institutions · TN
COMMISSIONER GONZALES ANNOUNCES WEEKLY FORMULA RATE JULY 21, 2026
July 21, 2026
Summary
Tennessee Commissioner of Financial Institutions announced that the maximum effective formula rate of interest is 10.75% per annum, based on a 4% spread over the Federal Reserve prime rate of 6.75%. This rate is effective until the prime rate changes, per Tennessee law requiring weekly announcements. All lenders making loans in Tennessee must comply with this usury limit.
AI-generated summary · Jul 28, 2026. Verify with your compliance counsel before acting.
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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 July 20, 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 JULY 21, 2026" cover?
- Tennessee Commissioner of Financial Institutions announced that the maximum effective formula rate of interest is 10.75% per annum, based on a 4% spread…
- Which agency issued this update?
- This update was issued by Tennessee Department of Financial Institutions.
- When was it published?
- It was published on July 21, 2026.