Floating Interest Rate
5paisa Research Team
Last Updated: 05 Jul, 2024 06:04 PM IST

Content
- Introduction
- What is a Floating Rate?
- Floating Rate Calculation
- When is a Floating Interest Rate Relevant?
- Benefits of Floating Interest Rate
- Limitations of Floating Interest Rate
- Who Should Opt for a Floating Interest Rate?
- Differences Between Floating and Fixed Interest Rates
Introduction
If you are considering taking a loan or investing in a financial product, it's essential to understand the different types of interest rates available to you. Two principal types include fixed and floating rates. While fixed interest rates remain constant over time, floating interest rates can fluctuate based on a range of factors, such as changes in the market or economic conditions. This blog explains what a floating interest rate means.
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