A loan with the interest rate made subject to periodical changes in line with market changes.
Loans on which the interest rates are periodically reset. In the international financial markets, the LIBOR related loans are the most common of the floating rate loans.
the interest rate on a floating rate loan fluctuates with some reference or index, often the prime lending rate, banker’s acceptance or LIBOR.
a loan whose rate of interest changes periodically over time
In business and finance, a floating rate loan (or a variable or adjustable rate loan) refers to a loan with a floating interest rate. The total rate paid by the customer "floats" in relation to some base rate, to which a spread or margin is added (or more rarely, subtracted). The term of the loan may be substantially longer than the basis from which the floating rate loan is priced; for example, a 25-year mortgage may be priced off of the 6-month prime lending rate.