Definitions for "Variable Rate Loan"
A loan with an interest rate that changes depending on changes in a specified measure, such as the prime rate.
Loan whose interest rate changes over its life in relation to the level of an index.
A loan that carries a fluctuating (floating) interest rate that is tied to changes in an index rate. Rates are revised at predetermined intervals. Many commercial loan rates are adjusted against changes in the London Interbank Offered Rate (LIBOR).