For more information on this topic, go to With a fixed-rate loan, the interest rate stays the same over the life of the loan, which can help borrowers budget for repayment. With a variable-rate loan, the interest rate changes periodically to reflect current market conditions. Related Videos. 00:50.The interest rate, in this case, will be pegged on the indexed rate plus a spread/margin determined by the lender. Apart from the full-term variable rate loan, the variable interest rate can be part of a hybrid loan. An example is an adjustable-rate mortgage that combines both fixed and variable interest rates during the term of the loan.Compare a range of fixed and variable rate personal loans Data updated regularly Reveal your potential loan offers and rates Answer two quick questions to filter the loan offers and get the best one for you. Select your credit score range Very good (740-850) Good (670-739) Fair (580-669) Poor (300-579) Finally, select where you live.Variable rate loans are loans that have an interest rate that will fluctuate over time in line with prevailing interest rates. They generally have lower starting interest rates than fixed rate loans, but the interest rate and payment amounts can change over time. Sometimes they are also known as floating rate loans.

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