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Tennessee Interest Rate & Usury Laws

SUMMARY: Tennessee Maximum Interest Rate

  • 8¾% annually

Tennessee Code

From Tennessee Code Title 47 Chapter 14: INTEREST RATES GENERALLY

 

47-14-103.   Maximum effective rates generally

 

Except as otherwise expressly provided by this chapter or by other statutes, the maximum effective rates of interest are as follows:

 

(1) For all transactions in which other statutes fix a maximum effective rate of interest for particular categories of creditors, lenders, or transactions, the rate so fixed;

(2) For all written contracts, including obligations issued by or on behalf of the state of Tennessee, any county, municipality, or district in the state, or any agency, authority, branch, bureau, commission, corporation, department, or instrumentality thereof, signed by the party to be charged, and not subject to subdivision (1), the applicable formula rate; and

(3) For all other transactions, ten percent (10%) per annum.

 

Announcement of Maximum Effective Formula Rate of Interest

 

February 11, 2020

NASHVILLE, TENN. — Tennessee Department of Financial Institutions Commissioner Greg Gonzales announced today that the maximum effective formula rate of interest in Tennessee is 8.75 percent per annum.

The rate is based on a ceiling of 4.0 percent over the weekly average prime loan rate of 4.75 percent as published by the Federal Reserve on February 10, 2020.

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.

 

Disclaimer

 

This information may or may not be the full scope of Tennessee’s interest and usury laws.  Many States may, from time to time, adjust their statutes pertaining to allowable interest and usury rates as well as exceptions.  Be sure to review the Tennessee Interest & Usury statute in its entirety and consult with a relevant attorney if you have any specific questions.

 

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