Variable rate loan
Loan made at an interest rate that fluctuates based on a base interest rate such as the Prime Rate or libor.
Similar financial terms
Stochastic variable
A variable whose future value is uncertain.
Variable Rate Loan
Loan whose interest rate changes over its life in relation to the level of an index.
variable rate loan
loan carrying an interest rate that may move up or down, depending on the movements of an outside standard such as the rate paid on U.S. Treasury securities; also called anadjustable rate loan.
Variable Rate Loan
Introductory
2.15%*
The most effective variable mortgage product available to you.
Standard variable rate loan - a home loan, usually with more comprehensive features than a basic variable loan. Fixed rate loans often revert to the standard variable rate at the end of their fixed term.
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Base Rate: On a variable rate loan, it is the key underlying rate to which lenders add a spread to come up with a total lending rate for the borrower.
The rate is used as an index for various variable rate loans, particularly Stafford and PLUS education loans. Lenders use such an index, which varies, to adjust interest rates as economic conditions change.
Capped rates are supposed to provide the borrower with a hybrid of a fixed and variable rate loan. The fixed part comes from the capped rate itself, while the variable part comes from the loan's ability to move up or down with market fluctuations.
You can repay a variable rate loan at any time with no interest penalty.
Financial Regulator (11th Edition)
Voluntary Groups
This is the linkage of independent retailers to a major wholesaler.
 See also: Variable rate, Prime rate, LIBOR, Banks, Base interest rate
  
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