Interest Rate
/ˈɪn.tɚ.ɪst reɪt/
Definitions
- (n.) The percentage charged or earned on a sum of money over a period, often stipulated in financial and legal agreements.
The loan agreement specifies an interest rate of 5% per annum.
- (n.) A legal rate set by statute or regulation governing the amount of interest that can be charged on debts or obligations.
Usury laws cap the maximum allowable interest rate to protect borrowers.
Forms
- interest rates
Related terms
See also
Commentary
Interest rate definitions vary slightly in statutory versus contractual contexts; clarity in drafting whether the rate is fixed, variable, statutory, or negotiated is essential.
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.