Variable Interest Rate
/ˈvɛəriəbl ˈɪntrəst reɪt/
Definitions
- (n.) An interest rate on a loan or security that fluctuates over time based on an underlying benchmark or index.
The loan's variable interest rate adjusted quarterly according to the LIBOR.
Forms
- variable interest rate
- variable interest rates
Related terms
See also
Commentary
Variable interest rates require clear disclosure in loan agreements to ensure borrowers understand potential payment changes.
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