Computation of Interest — Installment Loans

1. Law
2. Tennessee Code
3. Commercial Instruments and Transactions
4. Interest Rates Generally
5. Computation of Interest — Installment Loans

1. This chapter does not limit or restrict the manner or method of contracting for interest, whether by way of add-on, discount, or otherwise, so long as the maximum effective rate of interest does not exceed that authorized by statute.
2. For installment loans, the maximum effective rate of interest shall:
   1. Be determined in accordance with the actuarial method;
   2. Be calculated, in the case of a precomputed loan, on the assumption that all scheduled payments will be made as contracted; and
   3. Not be affected by the prepayment of the loan, in whole or in part.

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