Variable-rate loan

(redirected from Variable Rate Loans)

Variable-rate loan

Loan made at an interest rate that fluctuates depending on a base interest rate, such as the prime rate or LIBOR.

Variable-Rate Loan

A loan with an interest rate that changes periodically. Generally speaking, a variable rate loan is linked to some major benchmark rate; for example, the interest rate may be stated as "LIBOR + 1%." The loan may or may not have a cap on how much the interest rate can rise or fall, or on how often the interest rate may change. Very often, the initial interest rate for a variable-rate loan is lower than that for a fixed-rate loan. This allows more people to qualify for a loan; however, this kind of loan can be risky because the interest rate (and therefore the monthly payment) can rise unexpectedly. See also: Adjustable-rate mortgage.
References in periodicals archive ?
99 percent with variable rate loans available in the future.
5% on variable rate loans despite these institutions being able to obtain money for as little as 1%.
50 percent on new variable rate loans under the Canada Small Business Financing Programme.
Farm Plus Financial specializes in providing agriculture real estate based farm loans ranging from variable rate loans, to fixed rate loans, to lines of credit that may be used for farm operating and expansion purposes.
The RBS fund will offer UK manufacturers fixed and variable rate loans of between Au250,000 and Au25 million with interest rates and arrangement fees for each new tranche of lending.
The RBS fund will offer UK manufacturers fixed and variable rate loans of between pounds 250,000 and pounds 25m, with interest rates and arrangement fees for each new tranche of lending.
He thinks borrowers on standard variable rate loans are thinking of locking in a new deal before rates rise.
org report continuing strong demand for variable rate loans, as fixed rate products for expatriates remain stubbornly high at over 6.
Nationwide thinks buyers like variable rate loans because they want to keep more of their income each month.
5 percent base rate cut by Bank of England to all its small business customers with variable rate loans and overdrafts.
A month-to-month comparison of the fixed-rate financing option versus the variable rate loans he secured shows that he would have paid less during some months with traditional loans, but a range of 0.
That means, for example, it is sometimes talking now with customers who went to other banks and received variable rate loans but now want to refinance.

Full browser ?