Variable Rate
/ˈvɛər.i.ə.bəl reɪt/
Definitions
- (n.) An interest or payment rate that can change periodically based on a benchmark or formula stipulated in a contract.
The loan's variable rate adjusted annually according to the prime lending rate.
Forms
- variable rate
- variable rates
Related terms
See also
Commentary
In contracts, clearly defining the adjustment mechanism for a variable rate is crucial to avoid disputes over amendments or payments.
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.