Variable-Rate Loan

A variable-rate loan is a loan with a variable interest rate which is adjusted to match market conditions.

LIBOR-based loans and LIBOR-based mortgages are examples of variable-rate loans. The interest rates of LIBOR-based loans are adjusted every 3, 6 or 12 months based on LIBOR rates.

More on this topic:
LIBOR mortgages in Switzerland explained

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Expert Benjamin Manz
Benjamin Manz is CEO of and an independent expert on banking and finance.