Rate of Interest
/ˈreɪt əv ˈɪntrɪst/
Definitions
- (n.) The percentage at which interest is calculated on a principal sum in a loan, investment, or financial obligation as stipulated by law or contract.
The contract specifies a rate of interest of 5% per annum on the outstanding loan balance.
Forms
- rate of interest
Related terms
See also
Commentary
The rate of interest is a fundamental concept in financial contracts and litigation, often capped or regulated by usury laws; precision in stating the rate is crucial 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.