Floating Interest Rate
/ˈfloʊtɪŋ ˈɪntrəst reɪt/
Definitions
- (n.) An interest rate on a loan or security that fluctuates over time based on a benchmark or reference rate.
The loan agreement specified a floating interest rate tied to the LIBOR.
Forms
- floating interest rate
Related terms
See also
Commentary
Floating interest rates typically require clear definition of the reference index and adjustment periods in contracts to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.