variable interest rate

Variable interest rate

Adjustable Rate

An interest rate on a loan or convertible security that changes periodically. For example, an adjustable rate mortgage has a certain interest rate that changes with varying frequency. The frequency of the change is called the adjustment rate. Usually, the adjustable rate is set according to some outside benchmark; for example, a loan might set the interest rate at LIBOR + 1%. An advantage of adjustable rate loans is the fact that one's interest rate might fall over time; this is a particular advantage if prevailing interest rates are high at the time of the loan. A disadvantage to adjustable rates is the uncertainty associated with them: one's payments on the loan generally rise or fall.

variable interest rate

A loan interest rate that changes as some outside factor,preferably one not within the control of the lender,changes.Commonly seen in adjustable-rate mortgages.
References in periodicals archive ?
Highlights of the ERC product range include a lead variable interest rate of just 3.47%, together with two-year fixed rate loans from 3.64%, three-year fixed rates from 3.75% and five-year fixed rates from 3.98%.
Most of the loans have embedded fixed interest rates; only 5 loans are on LIBOR terms (variable interest rate).
This issue consists of SEK500m with a maturity of two years and with a variable interest rate of 3M STIBOR + 75 basis points.
The term loans bear a variable interest rate equal to the greater of 10.15% or 10.15% plus the prime rate minus 5.50% with a ceiling of 12.15%.
If the mortgage deed states about variable interest rate then the bank may apply variable interest rates as mentioned in the mortgage deed.
'We explore other possibilities and we are looking at the possibility of variable interest rate. We are looking at the possibility of local currency financing,' Jin added.
'We explore other possibilities and we are looking at the possibility of variable interest rate, we are looking at the possibility of local currency financing,' Jin said.
These accounts are suitable for savers who do not need access to their savings and can invest a lump sum of money for a fixed period of time at a guaranteed or variable interest rate. At Progressive we have a number of bond accounts, the majority of these pay interest annually with one account offering monthly interest.
The penalty affects people who are rolled onto their bank's standard variable interest rate at the end of a fixed term mortgage deal.
The bank also decided to offer a new product for new saving certificates with variable interest rate, according to the corridor rate announced by the Central Bank of Egypt (CBE).
This credit will be repaid over a period of 28 years, with a grace period of five years and five months and a variable interest rate of 1.2%.
Theloan has a variable interest rate, but Griffin entered into an interest rate swap agreement with People's Bank that effectively fixes the interest rate at 4.45 percent over the ten-year term.

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