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Home > QFINANCE Dictionary > Definition of fixed-rate loan

Definition of

fixed-rate loan

Finance

loan with unchanging interest rate a loan with an interest rate that is set at the beginning of the term and remains the same throughout

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fixed-rate loan - Related Articles

  • Hedging Interest Rate Risk—Case Study and Strategies

    Checklists

    A company enters into a vanilla interest rate swap with a bank to reduce the risk from fluctuations on a $10 million loan it has taken out on a floating rate. The bank agrees to a fixed rate of, for example, 6% over five years, while the floating rates are based on the six-monthly Libor (London

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Definitions of ’fixed-rate loan’ and meaning of ’fixed-rate loan’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’fixed-rate loan’ and other financial terms with our online QFINANCE Financial Dictionary.

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