percentage of principal paid by borrower to lender as a price for the use of the lender's money Borrowers with no past financial difficulties normally get a lower interest rate.
- rate of interest
- The banks have all lowered their interest rates for loans to house owners.
- If a party fails to make payment on the due date and interest rate of 4% will be charged on the outstanding amount.
- The company tried to renegotiate the interest rate of its loan with the bank.
- Also known as rate of interest. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR).