Interest rates clause: Copy, customize, and use instantly
Introduction
An interest rates clause outlines the applicable interest rate(s) for any outstanding amounts owed under the agreement. This clause specifies whether the interest rate is fixed or variable, the rate itself, and the circumstances under which interest is charged. It ensures that both parties understand the financial obligations related to payments, including the consequences of late or missed payments.
Below are templates for interest rates clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard interest rate clause
This variation applies when a fixed interest rate is applied.
The interest rate applicable to any outstanding amounts under this agreement shall be [X]% per annum, calculated on the balance outstanding from the due date until the date payment is made in full.
Variable interest rate clause
This variation applies when a variable interest rate is applied.
The interest rate applicable to any outstanding amounts under this agreement shall be [X]% per annum, adjusted quarterly based on [specific index, e.g., LIBOR, prime rate]. The interest rate will be recalculated based on changes in the [specified index] and will be effective on the first day of each quarter.
Late payment interest rate clause
This variation applies when a higher interest rate is charged for late payments.
Any amounts not paid within [X] days of the due date shall accrue interest at a rate of [Y]% per annum, compounded monthly, until the balance is paid in full. This late payment interest rate will be in addition to any other charges or penalties outlined in this agreement.
Simple interest rate clause
This variation applies when simple interest is used.
The interest rate applicable to any overdue amounts under this agreement shall be [X]% per annum, calculated on a simple interest basis from the date the amount was due until the date payment is received.
Compound interest rate clause
This variation applies when compound interest is used.
The interest rate applicable to any overdue amounts under this agreement shall be [X]% per annum, compounded [monthly/quarterly/annually], and calculated on the outstanding balance as of each compounding date.
Default interest rate clause
This variation applies when a higher interest rate is applied in case of default.
If the debtor defaults on any payment, the interest rate on the outstanding balance will increase to [X]% per annum, compounded [monthly/quarterly], until the default is cured or the amount is paid in full.
Fixed interest rate with adjustments clause
This variation applies when a fixed interest rate may be adjusted under specific conditions.
The interest rate applicable to this agreement is [X]% per annum, fixed for the first [Y] years of the agreement. After [Y] years, the interest rate may be adjusted annually based on changes in [specified index or market conditions].
Interest rate clause with grace period
This variation applies when a grace period is provided before interest is charged.
No interest will be charged on any overdue amounts if paid within [X] days after the due date. After the expiration of the grace period, interest will accrue at a rate of [X]% per annum, compounded [monthly/quarterly/annually].
Interest rate clause with penalty rate for non-payment
This variation applies when a penalty interest rate is charged for non-payment after a specific time period.
If any payment due under this agreement is not made within [X] days of the due date, a penalty interest rate of [X]% per annum shall apply, calculated on a daily basis until the overdue amount is fully paid.
Interest rate clause for installment payments
This variation applies when the interest rate is tied to installment payments.
If the amounts owed under this agreement are paid in installments, the interest rate applicable to the outstanding balance shall be [X]% per annum, calculated on the remaining balance of the principal after each installment payment.
Floating interest rate clause
This variation applies when the interest rate floats based on an external reference.
The interest rate applicable to any outstanding amounts shall be the [X]% per annum plus [Y]% based on the [specified external index, e.g., LIBOR, prime rate], which may fluctuate periodically based on market conditions.
Interest rate clause with different rates for different types of payments
This variation applies when different rates are used for different types of payments.
The interest rate applicable to overdue payments for goods shall be [X]% per annum, while the interest rate for overdue service payments shall be [Y]% per annum. Both rates will be calculated on the outstanding balance.
Penalty interest rate clause for late fees
This variation applies when a higher penalty interest rate is applied for non-payment.
Any amounts remaining unpaid after the due date shall accrue a penalty interest rate of [X]% per annum, compounded monthly, until paid in full. The penalty interest will be in addition to any late fees specified elsewhere in this agreement.
Interest rate clause for taxes and fees
This variation applies when interest is charged on taxes and fees as well.
Any taxes, fees, or other charges related to the payment obligations under this agreement that remain unpaid after the due date will be subject to interest at a rate of [X]% per annum, compounded [monthly/quarterly].
Interest rate clause for capitalized interest
This variation applies when interest is capitalized and added to the principal.
Interest on any overdue amounts will be capitalized and added to the principal balance at the rate of [X]% per annum. The compounded interest will be calculated monthly on the accumulated balance until paid.
Early payment discount clause
This variation applies when an early payment discount is offered.
If the debtor pays the outstanding amount in full within [X] days of the due date, a discount of [Y]% will apply to the principal amount. The interest rate on any remaining balance will be [X]% per annum.
Interest rate clause with periodic adjustment
This variation applies when the interest rate is adjusted periodically.
The interest rate for amounts due under this agreement shall be adjusted every [specified period, e.g., annually], based on changes in [external index or specified market rate]. The new rate will apply to all balances after the adjustment.
Interest rate clause with dispute resolution provision
This variation applies when interest is charged on disputed amounts.
Any disputed amounts that are not resolved within [X] days of the due date shall accrue interest at the rate of [X]% per annum, calculated on the amount in dispute, until the dispute is resolved and the balance is paid in full.
Interest rate clause with different terms for different parties
This variation applies when different interest rates are applied to different parties.
The interest rate applicable to payments owed by [Party A] will be [X]% per annum, while payments owed by [Party B] will incur an interest rate of [Y]% per annum, calculated on the outstanding balance.
Interest rate clause with repayment schedule
This variation applies when the interest is calculated based on a repayment schedule.
The interest rate applicable to the amounts owed will be calculated at [X]% per annum, based on the repayment schedule provided. The outstanding balance will accrue interest on a monthly basis according to the repayment terms.
Simple interest rate clause with annual compounding
This variation applies when simple interest is compounded annually.
The interest rate on any outstanding balances under this agreement will be [X]% per annum, calculated using simple interest and compounded annually.
Minimum interest rate clause
This variation applies when there is a minimum interest rate applied, regardless of other factors.
The interest rate applied to any outstanding amounts under this agreement shall not be less than [X]% per annum, regardless of fluctuations in [specified index or reference rate].
Interest rate clause for installment defaults
This variation applies when a higher interest rate is applied if installments are missed.
If any installment payment is missed, the amount due will accrue interest at a rate of [X]% per annum, compounded monthly, until the installment is paid in full.
Interest rate clause for late invoice payments
This variation applies when late payments on invoices are subject to interest.
Any unpaid invoice under this agreement shall accrue interest at a rate of [X]% per annum, compounded monthly, from the due date of the invoice until the full amount is paid.
Interest rate clause with annual fee for late payments
This variation applies when an annual fee is added for late payments in addition to interest.
In addition to the interest rate of [X]% per annum, a late payment fee of [Y]% of the overdue amount will be charged annually until the outstanding balance is paid.
Interest rate clause with grace period for late payments
This variation applies when a grace period is given before interest is charged.
If the payment is not made within the specified due date, a grace period of [X] days will be granted. After the grace period, interest will accrue at [X]% per annum on the outstanding balance.
Interest rate clause for escalating interest
This variation applies when interest increases after a certain period.
Interest on overdue amounts will initially accrue at a rate of [X]% per annum. If the overdue amount is not paid within [specified period], the interest rate will increase to [Y]% per annum, compounded monthly.
Interest rate clause for specific calculation period
This variation applies when the interest rate is calculated for a specific period.
The interest rate of [X]% per annum will be calculated for each calendar month on the outstanding balance. The amount will be recalculated monthly and charged accordingly.
Interest rate clause for unagreed charges
This variation applies when charges not agreed upon by both parties are subject to an interest rate.
Any charges or fees that are not agreed upon in advance by both parties shall be subject to an interest rate of [X]% per annum from the date they are incurred until paid in full.
Interest rate clause for early settlement
This variation applies when there is a reduction in the interest rate for early settlement.
If the outstanding amount is paid in full before the specified due date, the interest rate will be reduced to [X]% per annum for the remaining balance, providing early settlement is made.
Interest rate clause for fixed-rate loans
This variation applies when the interest rate is fixed for loans under the agreement.
The interest rate for any loans provided under this agreement shall be fixed at [X]% per annum for the entire term of the loan. This rate shall not change during the term of the loan.
Interest rate clause for revolving credit
This variation applies when a revolving credit facility is involved.
The interest rate for any outstanding balance under the revolving credit facility shall be [X]% per annum, adjusted quarterly based on the prime lending rate, and will apply to any amount outstanding in the credit facility.
Interest rate clause with rate change based on creditworthiness
This variation applies when the interest rate is determined by the borrower’s creditworthiness.
The interest rate applicable to the amounts owed under this agreement will be [X]% per annum, subject to adjustment based on the creditworthiness of the borrower, as determined by [specified credit rating agency or evaluation method].
Interest rate clause with discount for early repayment
This variation applies when a discount is offered for early repayment.
The borrower may pay off the outstanding amount early at a discount of [X]% if paid in full within [specified period] from the date of the agreement. The interest rate on the remaining balance will be adjusted accordingly.
Interest rate clause with compounded quarterly calculation
This variation applies when interest is compounded quarterly.
Interest on any outstanding amounts under this agreement will accrue at a rate of [X]% per annum, compounded quarterly, on the remaining balance. Interest will be calculated and added to the principal at the end of each quarter.
Interest rate clause with late fee and interest
This variation applies when late fees are charged in addition to the interest rate.
In the event of a late payment, the overdue amount will be subject to an interest rate of [X]% per annum, compounded monthly, plus a late fee of [Y]% of the overdue amount. The interest and fee will be calculated separately and added to the outstanding balance.
Interest rate clause for special rate for the first year
This variation applies when a special introductory rate is applied for the first year.
For the first year of this agreement, the interest rate applicable to any outstanding amounts will be [X]% per annum. After the first year, the rate will adjust to [Y]% per annum based on [specified index or market condition].
Interest rate clause for fixed rate during the agreement term
This variation applies when the interest rate is fixed for the entire agreement term.
The interest rate applicable to the outstanding amounts under this agreement shall be fixed at [X]% per annum for the entire term of the agreement. This rate will not change regardless of any market fluctuations.
Interest rate clause with early interest reduction
This variation applies when early repayment leads to a reduced interest rate.
If the borrower repays the balance in full within [specified period], the interest rate on the remaining balance will be reduced by [X]% per annum, and the adjusted rate will be applied to the outstanding amount.
Interest rate clause with the ability to change rate with notice
This variation applies when the lender has the ability to change the interest rate with prior notice.
The lender reserves the right to change the interest rate applied to the outstanding balance under this agreement. Any change in the rate will be communicated to the borrower in writing at least [specified number] days before the new rate takes effect.
Interest rate clause with a ceiling on the interest rate
This variation applies when there is a cap on the interest rate.
The interest rate on the outstanding amounts shall be subject to a ceiling of [X]% per annum. In no case will the rate exceed this cap, even if the reference rate or applicable index increases beyond this amount.
Interest rate clause for non-compounding of interest
This variation applies when interest is not compounded.
Interest on any outstanding amounts under this agreement will be calculated at [X]% per annum, without compounding. The interest will be calculated on the initial principal balance and will not be added to the principal.
Interest rate clause with varying rates for different periods
This variation applies when the interest rate changes for different periods within the agreement.
The interest rate applicable to any outstanding balances will be [X]% per annum for the first [specified period] of the agreement. After this period, the rate will increase to [Y]% per annum for the remaining duration of the agreement.
Interest rate clause for non-payment penalty
This variation applies when there is a penalty interest rate for non-payment.
If the borrower fails to make a payment within [specified number] days of the due date, the interest rate on the overdue amount will increase to [X]% per annum, compounded monthly, for the duration of the overdue period.
Interest rate clause for rate change based on payment history
This variation applies when the interest rate is tied to the borrower’s payment history.
The interest rate for this agreement will be set at [X]% per annum for the first year. If the borrower maintains timely payments for [specified number] consecutive months, the rate will reduce to [Y]% per annum for the remainder of the term.
Interest rate clause for graduated rates
This variation applies when the interest rate gradually increases over time.
The interest rate applicable to the outstanding amounts under this agreement will be [X]% per annum for the first [specified period]. After this period, the rate will increase to [Y]% per annum for the following [specified period] and so on, until the full term of the agreement is completed.
Interest rate clause for variable rate linked to an index
This variation applies when the interest rate is linked to a financial index.
The interest rate applicable to any outstanding amounts under this agreement will be [X]% per annum, plus the [specified index, e.g., LIBOR, prime rate]. The interest rate will adjust automatically based on changes in the index, and the new rate will take effect immediately.
Interest rate clause with reference to inflation adjustments
This variation applies when the interest rate is adjusted based on inflation.
The interest rate applicable to the outstanding balance will be adjusted annually based on the rate of inflation as measured by [specified inflation index]. The rate will be increased or decreased to reflect any changes in inflation.
Interest rate clause for tiered rates based on loan balance
This variation applies when different rates apply to different portions of the loan balance.
The interest rate applied to the outstanding balance will be [X]% per annum for amounts up to [specified amount]. Any balance exceeding this amount will accrue interest at a rate of [Y]% per annum.
Interest rate clause with reference to credit tier
This variation applies when interest rates are based on the borrower’s credit tier.
The interest rate on the outstanding balance will be determined based on the borrower’s credit tier. The rate will be [X]% per annum for borrowers in the highest credit tier and [Y]% per annum for borrowers in the lower credit tiers.
Interest rate clause with change in the event of default
This variation applies when the interest rate changes in the event of default.
In the event of default, the interest rate applicable to the outstanding balance will increase to [X]% per annum, compounded monthly, until the default is cured and the outstanding balance is paid in full.
Interest rate clause with fixed payment schedule
This variation applies when the payment schedule is fixed, but the interest rate remains subject to change.
The payment schedule for the loan is fixed under this agreement, with payments due on the [specified day of each month]. The interest rate is initially set at [X]% per annum but may change annually based on changes in [specified index].
Interest rate clause for overdue payments after partial settlement
This variation applies when partial settlement is made, but the outstanding balance still accrues interest.
If the borrower makes a partial settlement, interest will continue to accrue on the remaining balance at a rate of [X]% per annum, calculated from the date of partial settlement until the balance is fully paid.
Interest rate clause with early settlement penalty
This variation applies when an early settlement penalty is charged.
The borrower may repay the loan early, but an early settlement penalty of [X]% will be charged on the outstanding balance. The penalty will be calculated based on the amount paid off early, and the remaining balance will be subject to the regular interest rate of [Y]% per annum.
Interest rate clause with minimum charge
This variation applies when a minimum interest charge is applied.
The interest charged on the outstanding balance will be calculated at [X]% per annum, but in no case shall the interest amount be less than [specified amount] for any given period, regardless of the balance owed.
Interest rate clause for overdue balances at year-end
This variation applies when overdue balances are subject to interest at the end of each year.
Any outstanding balances as of [specified date, e.g., December 31] shall accrue interest at a rate of [X]% per annum, compounded annually, until the balance is paid in full.
Interest rate clause for early repayment of principal
This variation applies when early repayment of the principal is allowed but affects the interest rate.
If the borrower repays the principal balance before the specified maturity date, the interest rate will be reduced to [X]% per annum for the remaining amount due. The reduction in interest applies only to the early repayment portion.
Interest rate clause for post-default payments
This variation applies when interest rates are raised for payments after default.
After a default, any overdue amounts will be charged an increased interest rate of [X]% per annum, compounded daily, until the full amount due is paid.
Interest rate clause with grace period before interest starts
This variation applies when interest is not charged during a grace period.
No interest will be charged on the outstanding balance during the first [specified number] days of the loan. Interest will begin to accrue after the grace period at a rate of [X]% per annum.
Interest rate clause for deferred interest
This variation applies when interest is deferred to a later date.
Interest on the loan will be deferred for [specified period]. During this period, no interest will be charged. After the deferral period, the interest rate will be set at [X]% per annum and will be applied to the outstanding balance.
Interest rate clause with reference to loan type
This variation applies when the interest rate is linked to the type of loan.
The interest rate for this loan is [X]% per annum for a fixed-rate loan or [Y]% for a variable-rate loan. The rate applicable to the loan will depend on the loan type selected by the borrower.
Interest rate clause with reference to market-based rate
This variation applies when the interest rate is based on market rates.
The interest rate applicable to the outstanding balance will be [X]% per annum, adjusted quarterly based on the market rate of [specified index, e.g., LIBOR, prime rate], plus a margin of [Y]%.
Interest rate clause with tiered rates based on payment history
This variation applies when the interest rate changes based on payment history.
The interest rate applicable to the loan will be [X]% per annum for the first 12 months. If the borrower maintains timely payments, the rate will decrease to [Y]% per annum for the subsequent 12 months. If payments are delayed, the rate will increase to [Z]% per annum.
Interest rate clause for deferred payments
This variation applies when the interest rate is deferred during the payment period.
The interest rate on the outstanding balance will be deferred for [X] months. After the deferral period, interest will accrue at a rate of [Y]% per annum.
Interest rate clause for fluctuating based on loan term
This variation applies when the interest rate fluctuates depending on the loan term.
The interest rate will be [X]% per annum for loans with a term of less than [specified number] years. For loans exceeding this term, the interest rate will increase to [Y]% per annum, compounded annually.
Interest rate clause for installment-based payments
This variation applies when interest is calculated based on installment-based payments.
The interest rate on the outstanding balance will be [X]% per annum, calculated on the unpaid portion of each installment. Interest will be applied monthly on the remaining balance after each installment is made.
Interest rate clause with reference to loan purpose
This variation applies when the interest rate depends on the loan’s purpose.
The interest rate on the loan will be [X]% per annum if the loan is for [specified purpose]. If the loan is for a different purpose, the rate will increase to [Y]% per annum.
Interest rate clause for penalty interest after a missed payment
This variation applies when penalty interest is charged after a missed payment.
If any payment is missed, interest on the overdue amount will accrue at a rate of [X]% per annum, compounded daily, until the payment is made in full.
Interest rate clause for refinancing option
This variation applies when refinancing options are available with different interest rates.
The borrower may refinance the loan once within [specified period] at an interest rate of [X]% per annum. Any refinancing outside this term will be subject to an interest rate of [Y]% per annum.
Interest rate clause with rebate for early settlement
This variation applies when a rebate is given for early settlement of the loan.
The borrower may pay off the loan early and receive a rebate of [X]% of the interest accrued. The new interest rate on the remaining balance will be adjusted accordingly to reflect the rebate.
Interest rate clause for incremental rate changes
This variation applies when the interest rate increases incrementally over time.
The interest rate on the loan will start at [X]% per annum. The rate will increase by [Y]% every [specified period], capping at a maximum rate of [Z]% per annum.
Interest rate clause for fixed monthly payments
This variation applies when monthly payments are fixed but the interest rate changes.
Monthly payments under this agreement will be fixed at [specified amount]. However, the interest rate on the outstanding balance will change every [specified period] in line with [specified index].
Interest rate clause with cap on variable rate
This variation applies when a cap is set on a variable interest rate.
The interest rate on the outstanding balance will be determined based on [specified index], but the rate will not exceed [X]% per annum. If the index exceeds this rate, the maximum rate of [X]% will apply.
Interest rate clause for fixed payment amount with adjustable interest
This variation applies when the payment amount is fixed, but the interest rate is adjustable.
The borrower will make fixed monthly payments of [specified amount]. However, the interest rate will adjust based on [specified index], and the monthly payment may be adjusted accordingly if the rate increases.
Interest rate clause with increase after a grace period
This variation applies when the interest rate increases after a grace period.
The interest rate on the outstanding balance will be [X]% per annum during the first [specified period]. After the grace period ends, the rate will increase to [Y]% per annum.
Interest rate clause for rate based on payment frequency
This variation applies when the interest rate is determined by the frequency of payments.
The interest rate applied to the outstanding balance will be [X]% per annum if payments are made monthly. If payments are made quarterly, the rate will increase to [Y]% per annum.
Interest rate clause for interest on uncollected amounts
This variation applies when interest is charged on amounts that have not been collected by the due date.
Any amounts not collected by the due date will accrue interest at a rate of [X]% per annum, compounded daily, from the date they were due until the amounts are collected in full.
Interest rate clause for adjusting based on market fluctuations
This variation applies when the interest rate adjusts based on market fluctuations.
The interest rate for this loan will be determined based on the market rate, with a margin of [X]%. The rate will fluctuate periodically, and any changes will be applied on the first day of the following month.
Interest rate clause with a minimum interest charge
This variation applies when there is a minimum interest charge regardless of the balance.
The interest rate for this agreement will be [X]% per annum. However, the minimum interest charge will be [Y] amount per month, regardless of the outstanding balance.
Interest rate clause for tax-related adjustments
This variation applies when the interest rate is adjusted for tax-related reasons.
The interest rate for any outstanding amounts under this agreement will be [X]% per annum. In the event of changes in applicable tax laws that affect the lender’s costs, the interest rate may be adjusted accordingly, with prior notice to the borrower.
Interest rate clause for fixed rate after a specified term
This variation applies when the interest rate is fixed after an initial term.
The interest rate for the loan will be [X]% per annum for the first [specified period]. After this period, the interest rate will convert to a fixed rate of [Y]% per annum for the remainder of the term.
Interest rate clause with rate adjustment for early repayments
This variation applies when the rate adjusts based on early repayments.
If the borrower repays the loan early, the interest rate will be adjusted to [X]% per annum for the amount paid off early. The remaining balance will continue to accrue interest at the original rate of [Y]% per annum.
Interest rate clause for fixed payments, rate adjusted quarterly
This variation applies when payments are fixed but the interest rate is adjusted quarterly.
The borrower will make fixed monthly payments of [specified amount], with the interest rate adjusted quarterly based on [specified index]. The payments may change depending on the rate adjustments each quarter.
Interest rate clause for first-year discount
This variation applies when there is a discount on the interest rate for the first year.
The interest rate for the first year of this agreement will be [X]% per annum. After the first year, the rate will increase to [Y]% per annum, based on market conditions.
Interest rate clause with a fixed rate during grace period
This variation applies when the interest rate is fixed during a grace period.
The interest rate for the first [specified period] of this agreement will be [X]% per annum, during which no additional fees will be charged. After the grace period, the rate will be adjusted to [Y]% per annum.
Interest rate clause for seasonal adjustments
This variation applies when the interest rate is adjusted seasonally.
The interest rate on the outstanding balance will be [X]% per annum, with adjustments made at the start of each seasonal cycle. The new rate will take effect on [specified date].
Interest rate clause for loan restructuring
This variation applies when the interest rate is subject to change upon loan restructuring.
In the event of a loan restructuring, the interest rate may be adjusted to [X]% per annum. The new rate will be based on the restructured loan balance and term, and the change will be documented in writing.
Interest rate clause for periodic fixed rate review
This variation applies when the interest rate is reviewed periodically.
The interest rate for this loan will be fixed at [X]% per annum for [specified period]. After this period, the rate will be reviewed annually and may be adjusted based on [specified factors].
Interest rate clause for automatic adjustments with interest-only periods
This variation applies when the loan has an interest-only period followed by rate adjustments.
For the first [specified period], the loan will have an interest-only repayment schedule with an interest rate of [X]% per annum. After this period, the loan will be amortized, and the interest rate will adjust to [Y]% per annum based on [specified conditions].
Interest rate clause for conversion between fixed and variable rates
This variation applies when the interest rate can be converted between fixed and variable.
The borrower may elect to convert the interest rate from a fixed rate of [X]% per annum to a variable rate based on [specified index]. The conversion may be requested at the beginning of each year with [specified notice] to the lender.
Interest rate clause for monthly and annual compounding options
This variation applies when the borrower can choose between monthly and annual compounding.
The borrower may choose between monthly or annual compounding of interest. If the borrower selects monthly compounding, the interest rate will be [X]% per annum; for annual compounding, the rate will be [Y]% per annum.
Interest rate clause for rate adjustment based on currency fluctuations
This variation applies when the interest rate is tied to currency fluctuations.
The interest rate applicable to the outstanding balance will be
[X]% per annum, adjusted annually based on the fluctuations of [specified currency]. The rate will be recalculated based on changes in the currency exchange rate.
Interest rate clause for default on partial payments
This variation applies when interest rates increase if partial payments are missed.
If partial payments are not made on time, the interest rate on the outstanding balance will increase to [X]% per annum, compounded monthly, until the overdue balance is fully settled.
Interest rate clause for fluctuating rates with a ceiling
This variation applies when the interest rate fluctuates with a ceiling cap.
The interest rate applicable to the loan will be based on [specified index], plus [X]%. However, the rate will not exceed [Y]% per annum, even if the reference index increases.
Interest rate clause with step-down rate for consistent payments
This variation applies when the interest rate steps down after a certain number of consistent payments.
The interest rate will be [X]% per annum for the first [specified number] months. If the borrower maintains consistent monthly payments for [specified number] months, the interest rate will be reduced to [Y]% per annum for the remainder of the loan.
Interest rate clause for premium rates on large loans
This variation applies when larger loans are subject to a premium interest rate.
The interest rate for loans exceeding [specified amount] will be [X]% per annum, while loans below this amount will be charged at a standard rate of [Y]% per annum.
Interest rate clause with discount for loyal customers
This variation applies when loyal customers receive a discount on the interest rate.
Customers who have maintained an active account for [specified number] years will receive a [X]% discount on the interest rate, reducing it to [Y]% per annum for the duration of the loan.
Interest rate clause with rate adjustment after loan review
This variation applies when the interest rate is reviewed periodically and adjusted.
The interest rate will be reviewed annually, and the rate may be adjusted based on [specified factors]. Any adjustments will take effect within [specified number] days after the review.
Interest rate clause with seasonal adjustments
This variation applies when the interest rate changes based on the season.
The interest rate will be adjusted seasonally, with [X]% per annum during the [specified months] and [Y]% per annum during the rest of the year. The change will take effect automatically at the start of each season.
Interest rate clause for repayment delay with higher rates
This variation applies when a higher interest rate is charged for delayed repayments.
If the borrower fails to make payments by the due date, the interest rate on the overdue balance will increase to [X]% per annum, compounded monthly, until the outstanding balance is settled.
Interest rate clause for rate adjustment based on loan type
This variation applies when different loan types have different interest rates.
The interest rate for [loan type 1] will be [X]% per annum, while the rate for [loan type 2] will be [Y]% per annum. The rate for each loan type will be determined based on the terms agreed upon.
Interest rate clause with no early repayment penalties
This variation applies when there are no penalties for early repayment of the loan.
The borrower may repay the loan in full or in part at any time without incurring a penalty. The interest rate will be adjusted to reflect the outstanding balance at the time of early repayment.
Interest rate clause for late payment surcharge
This variation applies when a surcharge is added for late payments.
Any overdue amounts will incur a surcharge of [X]% in addition to the normal interest rate. The surcharge will apply to the overdue balance until it is fully paid.
Interest rate clause for delayed action on interest payment
This variation applies when delayed action on interest payment increases the rate.
If the borrower delays payment of the accrued interest for more than [specified period], the interest rate will increase to [X]% per annum for the overdue amount.
Interest rate clause for deferred payments with compounded interest
This variation applies when payments are deferred, and interest is compounded.
If the borrower defers payments for up to [specified period], the interest on the outstanding balance will continue to accrue at [X]% per annum, compounded monthly, until payments resume.
Interest rate clause for rate increase after default
This variation applies when the interest rate increases if the borrower defaults.
If the borrower defaults on any payment, the interest rate applicable to the outstanding balance will increase to [X]% per annum, compounded [monthly/quarterly], until the default is resolved.
Interest rate clause for lower rate for fixed terms
This variation applies when the interest rate is lower for fixed loan terms.
The interest rate for the loan will be [X]% per annum for loans with a fixed term of [specified number] years. For loans with a term exceeding this period, the interest rate will increase to [Y]% per annum.
Interest rate clause for higher rates based on loan duration
This variation applies when longer loan durations result in higher interest rates.
Loans with a term of more than [specified number] years will be charged an interest rate of [X]% per annum. Loans with shorter terms will be charged at a rate of [Y]% per annum.
Interest rate clause for compound interest with monthly adjustments
This variation applies when compound interest is calculated and adjusted monthly.
Interest on any outstanding balance will accrue at a rate of [X]% per annum, compounded monthly. The interest rate will be reviewed and adjusted at the end of each month based on market conditions.
Interest rate clause with payment frequency options
This variation applies when different payment frequencies have different interest rates.
The borrower may choose to make monthly or quarterly payments. The interest rate for monthly payments will be [X]% per annum, while the rate for quarterly payments will be [Y]% per annum.
Interest rate clause with an introductory lower rate
This variation applies when a lower interest rate is offered initially.
The borrower will receive an introductory interest rate of [X]% per annum for the first [specified period]. After this period, the rate will increase to [Y]% per annum, based on the remaining balance.
Interest rate clause for minimum and maximum rates
This variation applies when the interest rate is capped with a minimum and maximum rate.
The interest rate for this loan will not be lower than [X]% per annum or higher than [Y]% per annum, regardless of changes in the market rate or reference index.
Interest rate clause with a rate reduction after multiple on-time payments
This variation applies when the interest rate is reduced after multiple on-time payments.
If the borrower makes [specified number] consecutive on-time payments, the interest rate will be reduced by [X]% per annum. This reduction will apply to the remaining balance of the loan.
Interest rate clause for quarterly rate adjustments
This variation applies when interest rates are adjusted quarterly.
The interest rate will be [X]% per annum, with adjustments made at the beginning of each calendar quarter based on [specified reference rate or market condition]. The rate for the following quarter will apply to the balance of the loan.
Interest rate clause for interest on partial payments
This variation applies when partial payments are subject to interest.
Partial payments made before the due date will be subject to an interest rate of [X]% per annum on the remaining balance until the next full payment is due. Interest will be calculated based on the outstanding amount.
Interest rate clause for different rates based on loan size
This variation applies when the interest rate is determined by the size of the loan.
The interest rate for loans exceeding [specified amount] will be [X]% per annum, while loans below this amount will be charged at a rate of [Y]% per annum.
Interest rate clause for rates tied to inflation
This variation applies when the interest rate is tied to inflation.
The interest rate on the outstanding balance will be adjusted annually based on the inflation rate as measured by [specified index]. The new rate will be calculated by adding [X]% to the current inflation rate.
Interest rate clause with penalty for non-payment
This variation applies when non-payment results in penalty interest.
If any payment due under this agreement is not made within [specified period], the interest rate on the overdue amount will increase to [X]% per annum, compounded [monthly/quarterly].
Interest rate clause with conditional rate reductions
This variation applies when interest rate reductions are conditional.
The interest rate will be reduced by [X]% per annum if the borrower repays a minimum of [specified percentage] of the outstanding loan within [specified period]. The reduction will take effect immediately upon repayment.
Interest rate clause for fixed monthly payments
This variation applies when the loan has fixed monthly payments but adjustable interest rates.
The borrower will make fixed monthly payments of [specified amount] based on an interest rate of [X]% per annum. If the interest rate changes, the monthly payment may be adjusted to ensure the loan is paid off by the end of the term.
Interest rate clause for rate adjustment based on payment behavior
This variation applies when the interest rate adjusts based on the borrower’s payment behavior.
If the borrower misses more than [X] payments, the interest rate on the loan will increase by [Y]% per annum. Conversely, if the borrower makes [X] consecutive on-time payments, the rate will decrease by [Y]% per annum.
Interest rate clause for rate adjustment based on credit score
This variation applies when the interest rate is tied to the borrower’s credit score.
The interest rate applicable to the outstanding balance will be [X]% per annum if the borrower’s credit score is above [specified threshold]. If the borrower’s credit score drops below this threshold, the rate will increase to [Y]% per annum.
Interest rate clause for fixed-rate loans with optional early repayment
This variation applies when the loan has a fixed rate but allows early repayment.
The loan will be charged at a fixed interest rate of [X]% per annum. If the borrower repays the loan in full before the end of the term, the remaining balance will accrue interest at a reduced rate of [Y]% per annum.
Interest rate clause for interest-only periods
This variation applies when the borrower is only required to pay interest during the initial period.
For the first [specified period], the borrower is required to pay only the interest on the outstanding balance at a rate of [X]% per annum. After the interest-only period, the borrower will begin to pay both principal and interest.
Interest rate clause with adjustments based on contract renewal
This variation applies when the interest rate changes upon contract renewal.
The interest rate on the loan will be [X]% per annum during the initial term. Upon renewal of the contract, the interest rate will be subject to review and may be adjusted based on [specified conditions, e.g., market rate].
Interest rate clause with penalty interest for missed deadlines
This variation applies when interest is charged as a penalty for missing deadlines.
If the borrower misses the payment deadline, interest on the overdue amount will be calculated at a rate of [X]% per annum, compounded monthly, until the balance is paid in full.
Interest rate clause with discounted rate for early repayment
This variation applies when a discount is offered for early repayment.
The borrower may repay the loan early and receive a discount of [X]% on the interest charged, reducing the interest rate to [Y]% per annum for the remaining term.
Interest rate clause with adjustments based on financial market conditions
This variation applies when the interest rate adjusts based on financial market conditions.
The interest rate for the loan will be [X]% per annum, adjusted quarterly based on fluctuations in [specified financial index]. The rate will be recalculated each quarter and applied to the remaining balance.
Interest rate clause for lower rate after timely payments
This variation applies when the interest rate reduces after a series of timely payments.
The interest rate will be [X]% per annum for the first [specified period]. If the borrower makes [specified number] consecutive on-time payments, the interest rate will be reduced to [Y]% per annum for the remainder of the loan.
Interest rate clause for rate increase after default
This variation applies when the interest rate increases after a payment default.
If the borrower defaults on any payment, the interest rate on the outstanding balance will increase to [X]% per annum, compounded daily, until the balance is fully paid and the default is rectified.
Interest rate clause with a maximum rate cap
This variation applies when the interest rate is capped at a maximum value.
The interest rate on the loan will be [X]% per annum, with a cap of [Y]% per annum. No interest rate applied to the loan will exceed this cap under any circumstances.
Interest rate clause for fixed rate during initial term with variable rate afterward
This variation applies when the rate is fixed initially, but becomes variable afterward.
The interest rate for the first [specified period] of this agreement will be fixed at [X]% per annum. After this period, the interest rate will change to [Y]% per annum, based on [specified index].
Interest rate clause for compounded monthly
This variation applies when interest is compounded monthly.
Interest will be charged on the outstanding balance at [X]% per annum, compounded monthly. The interest will be added to the principal at the end of each month.
Interest rate clause for non-compounding interest
This variation applies when interest is not compounded.
The interest on any outstanding amount will be charged at a rate of [X]% per annum, calculated on a simple interest basis without compounding, and will be payable monthly.
Interest rate clause with delayed payment penalty
This variation applies when a penalty is charged for delayed payments.
Any amounts not paid within [X] days of the due date will accrue interest at a rate of [Y]% per annum, compounded monthly, until the overdue balance is paid in full.
Interest rate clause with penalty interest for failure to pay installments
This variation applies when the failure to pay installments results in penalty interest.
If the borrower fails to pay any installment on time, interest will be charged at a penalty rate of [X]% per annum, compounded monthly, on the overdue installment amount.
Interest rate clause for quarterly adjustments
This variation applies when the interest rate is adjusted quarterly.
The interest rate on the loan will be [X]% per annum, subject to quarterly adjustments based on [specified index]. The new rate will take effect on the first day of each quarter.
Interest rate clause for early settlement discount
This variation applies when a discount is offered for early settlement of the loan.
The borrower will receive a [X]% discount on the total interest amount if the loan is paid off in full within [specified period] from the loan date. After this period, the standard interest rate will apply.
Interest rate clause with rate adjustment based on credit score
This variation applies when the interest rate adjusts based on the borrower's credit score.
The interest rate on the loan will be [X]% per annum for borrowers with a credit score above [specified threshold]. If the borrower's credit score falls below this threshold, the interest rate will increase to [Y]% per annum.
Interest rate clause for reduced rate on large loan balances
This variation applies when a reduced rate is offered for large loan amounts.
For loan balances over [specified amount], the interest rate will be reduced to [X]% per annum. Loans below this amount will incur a rate of [Y]% per annum.
Interest rate clause for non-refundable interest
This variation applies when the interest is non-refundable, even in case of early payment.
The interest charged on this loan is non-refundable. Regardless of whether the loan is paid off early, the total interest amount will be payable as specified in this agreement.
Interest rate clause for interest on late invoices
This variation applies when interest is charged on late invoices.
Any overdue invoices shall accrue interest at a rate of [X]% per annum, compounded monthly, from the due date until paid in full.
Interest rate clause for fixed monthly payments with interest cap
This variation applies when monthly payments are fixed, and interest has a cap.
Monthly payments under this agreement will be fixed at [specified amount], with the interest rate capped at [X]% per annum. If the calculated interest rate exceeds this cap, the rate will be reduced to [X]%.
Interest rate clause for rate tied to currency exchange
This variation applies when the interest rate is tied to currency exchange fluctuations.
The interest rate applicable to the outstanding balance will be [X]% per annum, adjusted quarterly based on the [specified currency] exchange rate. The new rate will take effect at the start of each quarter.
Interest rate clause with rate adjustment for financial hardship
This variation applies when the rate is adjusted in case of financial hardship.
In the event that the borrower demonstrates financial hardship, the lender may adjust the interest rate to [X]% per annum. The new rate will apply until the borrower is able to resume normal payments.
Interest rate clause for step-up interest rate
This variation applies when the interest rate increases after a specified period.
The interest rate on the outstanding balance will be [X]% per annum for the first [specified period]. After this period, the rate will increase to [Y]% per annum for the remainder of the loan term.
Interest rate clause with escalating interest rates after late payment
This variation applies when the interest rate escalates after a late payment.
If the borrower fails to make a payment within [X] days of the due date, the interest rate on the overdue amount will increase to [Y]% per annum, compounded monthly, until the overdue balance is paid.
Interest rate clause with optional adjustment by both parties
This variation applies when both parties can agree to adjust the interest rate.
The interest rate on the outstanding balance may be adjusted at any time by mutual written agreement between the lender and the borrower. Any changes to the rate will take effect immediately upon the signing of the amended agreement.
Interest rate clause with fixed rate during initial period, variable afterward
This variation applies when the interest rate is fixed initially, but variable after the initial period.
The interest rate will be fixed at [X]% per annum for the first [specified period]. After this period, the rate will become variable, based on the [specified reference rate], and adjusted every [specified period].
Interest rate clause with percentage change tied to credit behavior
This variation applies when interest changes based on the borrower’s credit behavior.
The interest rate on the loan will initially be [X]% per annum. If the borrower defaults on any payment, the interest rate will increase by [Y]% per annum, with the rate reverting to the original [X]% once all payments are brought current.
Interest rate clause for immediate rate adjustment upon default
This variation applies when the interest rate changes immediately upon default.
Upon default, the interest rate on the outstanding balance will immediately increase to [X]% per annum, and interest will continue to accrue at this rate until the default is rectified.
Interest rate clause with fixed rate for first year, market rate thereafter
This variation applies when the rate is fixed for the first year, but changes after that based on the market rate.
The interest rate for the first year of this agreement will be fixed at [X]% per annum. After this period, the rate will adjust annually based on [specified reference rate] plus [Y]% per annum.
Interest rate clause with adjustment based on borrower’s payment history
This variation applies when the interest rate changes based on the borrower’s payment history.
The interest rate will be [X]% per annum for the first [specified period]. If the borrower maintains a clean payment record, the rate will be reduced to [Y]% per annum after [specified period]. If late payments occur, the rate will increase to [Z]% per annum.
Interest rate clause with no increase after default
This variation applies when the interest rate does not increase after default.
If the borrower defaults on any payment, the interest rate will remain fixed at [X]% per annum, and no additional penalty interest will be applied. However, the borrower must cure the default within [specified period] to avoid other consequences.
Interest rate clause for multiple disbursements
This variation applies when interest is calculated on multiple loan disbursements.
Interest on the loan will be calculated at a rate of [X]% per annum, compounded monthly, on the outstanding balance. The interest will apply to each disbursement separately, based on the date the disbursement was made.
Interest rate clause with reduction for minimum payment history
This variation applies when the interest rate is reduced after a minimum number of payments.
The interest rate on the loan will be reduced from [X]% per annum to [Y]% per annum if the borrower has made at least [specified number] of consecutive on-time payments.
Interest rate clause with adjustment for market volatility
This variation applies when the interest rate is adjusted for market volatility.
The interest rate on the outstanding balance will be [X]% per annum, adjusted based on market volatility as determined by [specified financial institution or index]. The new rate will take effect on the first business day following any significant market change.
Interest rate clause for fixed term loan with potential for rate increase
This variation applies when the loan has a fixed term but allows for a potential rate increase.
The interest rate for the loan is fixed at [X]% per annum for the first [specified number] years. After this period, the lender may increase the interest rate by [Y]% per annum, subject to the borrower’s creditworthiness and market conditions.
Interest rate clause for daily compounding interest
This variation applies when interest is compounded daily.
The interest rate on the outstanding balance will be [X]% per annum, compounded daily. The interest will be calculated and added to the balance at the end of each day.
Interest rate clause for adjustable rate with a floor
This variation applies when the interest rate is adjustable, but there is a floor.
The interest rate on this loan will be based on the [specified reference rate], with a floor of [X]%. The rate will not fall below this threshold even if the reference rate decreases.
Interest rate clause for interest on settlement amounts
This variation applies when interest is applied to settlement amounts.
If any payment is settled late, interest will accrue on the remaining balance at a rate of [X]% per annum, compounded monthly, until the amount is paid in full.
Interest rate clause with rate change after the first payment
This variation applies when the rate changes after the first payment is made.
The interest rate will be [X]% per annum for the first payment cycle. After this, the rate will increase to [Y]% per annum for the remainder of the agreement.
Interest rate clause for interest on amounts above a specified threshold
This variation applies when interest is applied only to amounts exceeding a specified threshold.
Interest at a rate of [X]% per annum will only apply to any balance above [specified threshold]. Any amounts below this threshold will not accrue interest.
Interest rate clause for early repayment of a portion of the loan
This variation applies when early repayment of only a portion of the loan is made.
If the borrower repays a portion of the loan early, the interest rate will be recalculated on the remaining balance, with the new rate applying to the outstanding amount from the date of partial payment.
Interest rate clause for split payments with different rates
This variation applies when split payments have different interest rates.
For any split payments, the first portion will accrue interest at a rate of [X]% per annum, while the second portion will incur an interest rate of [Y]% per annum. The total interest will be calculated on the sum of both portions.
Interest rate clause for promotional rate
This variation applies when a promotional interest rate is offered for a limited time.
The interest rate will be [X]% per annum for the first [specified period]. After the promotional period ends, the rate will increase to [Y]% per annum for the remainder of the loan term.
Interest rate clause with cap on interest charges
This variation applies when there is a cap on the total interest charges.
The total interest charged on the loan will not exceed [specified maximum amount], regardless of the applicable interest rate. Once the cap is reached, no further interest will accrue.
Interest rate clause for default on installment payment
This variation applies when a default on installment payments results in a higher interest rate.
If the borrower defaults on any installment payment, the interest rate on the outstanding balance will increase to [X]% per annum until the default is cured and the account is brought current.
Interest rate clause with fixed rate for a specified period, then variable
This variation applies when the interest rate is fixed for a period, then becomes variable.
The interest rate for the first [specified period] will be fixed at [X]% per annum. After this period, the rate will become variable, adjusted annually based on [specified index].
Interest rate clause with surcharge for overdue payments
This variation applies when a surcharge is added to overdue payments.
Any overdue payments will incur an interest surcharge of [X]% per annum, compounded monthly, in addition to the original interest rate. The surcharge will be calculated on the overdue balance.
Interest rate clause for rate change due to economic conditions
This variation applies when the interest rate changes due to economic conditions.
The interest rate on the loan may be adjusted if there are significant changes in economic conditions, such as inflation or market volatility. The new rate will be effective [specified number] days after the change is notified to the borrower.
Interest rate clause for flat-rate calculation
This variation applies when interest is calculated at a flat rate.
The interest on the outstanding balance will be calculated at a flat rate of [X]% per annum, applied to the total amount borrowed throughout the term of the loan.
Interest rate clause with a temporary rate freeze
This variation applies when the interest rate is temporarily frozen.
The interest rate on the loan will be frozen at [X]% per annum for a period of [specified time]. After this period, the rate will adjust according to the terms outlined in this agreement.
Interest rate clause with a fixed rate during deferral period
This variation applies when the rate is fixed during a deferral period.
During the deferral period of [specified number] months, the interest rate on the loan will remain fixed at [X]% per annum. After this period, the rate will adjust according to [specified index].
Interest rate clause for rebate on early payment of interest
This variation applies when a rebate is given on early payment of interest.
If the borrower pays the accrued interest in full before the due date, a rebate of [X]% of the interest amount will be applied to the loan balance, reducing the total interest owed.
Interest rate clause for cumulative rate adjustments
This variation applies when interest rate adjustments are cumulative over time.
The interest rate will be adjusted annually, with each rate increase accumulating on the previous year’s rate. The new rate will be [X]% for the first year, [Y]% for the second year, and so on, until the loan is paid off.
Interest rate clause with a rate for missed payments
This variation applies when missed payments result in a different interest rate.
If the borrower misses a payment, the interest rate will increase to [X]% per annum for the overdue amount. The rate will revert to [Y]% once the payment is made.
Interest rate clause with fluctuating rates based on credit terms
This variation applies when the interest rate fluctuates based on the credit terms.
The interest rate applicable to this loan will be [X]% per annum if the borrower complies with the agreed-upon credit terms. If these terms are breached, the rate will increase to [Y]% per annum.
Interest rate clause for extended loan repayment term
This variation applies when the loan repayment term is extended, and the interest rate changes accordingly.
If the borrower requests an extension of the loan term, the interest rate will be adjusted to [X]% per annum, and the new rate will apply to the outstanding balance.
Interest rate clause with interest on early withdrawals
This variation applies when interest is charged for early withdrawals from the loan.
Early withdrawal of funds from the loan will incur an interest rate of [X]% per annum on the amount withdrawn, in addition to the standard rate on the remaining balance.
Interest rate clause for the application of the highest rate after default
This variation applies when the highest interest rate is applied after default.
In the event of a default, the interest rate on the outstanding balance will immediately increase to [X]% per annum, compounded daily, until the borrower rectifies the default.
Interest rate clause for rate based on business type
This variation applies when the interest rate is based on the borrower’s business type.
The interest rate for the loan will be [X]% per annum if the borrower is engaged in [specified business type]. For other business types, the interest rate will be [Y]% per annum.
Interest rate clause with annual review for adjustments
This variation applies when the interest rate is reviewed and adjusted annually.
The interest rate will be reviewed annually and adjusted based on changes in [specified market index or economic factor]. The new rate will apply from the start of the following year.
Interest rate clause with lower rate for secure loans
This variation applies when a lower rate is offered for secured loans.
If the loan is secured with collateral, the interest rate will be reduced to [X]% per annum. Unsecured loans will be charged at a rate of [Y]% per annum.
Interest rate clause with grace period for penalty rates
This variation applies when there is a grace period before penalty rates are applied.
No penalty interest will be charged if the borrower makes payment within [X] days of the due date. After this grace period, the penalty interest rate of [Y]% per annum will apply.
Interest rate clause with fluctuating rate based on borrower’s performance
This variation applies when the interest rate fluctuates based on the borrower’s performance.
The interest rate will be adjusted each year based on the borrower’s financial performance. If the borrower meets or exceeds [specified performance target], the interest rate will be reduced to [X]% per annum. If the target is not met, the rate will increase to [Y]% per annum.
Interest rate clause for initial fixed rate with potential increase
This variation applies when there is an initial fixed rate, followed by a potential increase.
The interest rate for the first [specified period] of this loan will be fixed at [X]% per annum. After this period, the rate may increase based on [specified index or market conditions].
Interest rate clause for monthly interest with late payment surcharge
This variation applies when monthly interest is charged with a surcharge for late payments.
The interest rate for the loan will be [X]% per annum, compounded monthly. Any late payments will incur an additional surcharge of [Y]% per annum, applied to the overdue balance.
Interest rate clause for lower rate on higher repayments
This variation applies when a lower rate is applied to higher repayments.
If the borrower makes additional repayments beyond the scheduled amounts, the interest rate will be reduced by [X]% per annum for the outstanding balance.
Interest rate clause for non-payment penalties with no upper limit
This variation applies when penalties for non-payment have no upper limit.
Non-payment will incur interest at a rate of [X]% per annum, compounded monthly, without an upper limit. The borrower agrees to pay the full outstanding balance, including any accrued interest.
Interest rate clause for different rates for different loan stages
This variation applies when different interest rates apply during different loan stages.
The interest rate will be [X]% per annum during the initial disbursement stage. After [specified period], the interest rate will increase to [Y]% per annum, applicable for the remaining duration of the loan.
Interest rate clause for interest on charged-off balances
This variation applies when interest is charged on balances that have been charged off.
Interest at the rate of [X]% per annum will continue to accrue on any charged-off balances until the balance is paid in full. The interest will be compounded monthly until the amount is settled.
Interest rate clause for multiple loan types with different rates
This variation applies when different loan types are subject to different interest rates.
The interest rate for [loan type 1] is [X]% per annum, while the rate for [loan type 2] is [Y]% per annum. The applicable rate will depend on the type of loan selected by the borrower.
Interest rate clause for rate adjustments based on payment defaults
This variation applies when the interest rate changes based on payment defaults.
If the borrower fails to make any payment within [specified number] of days after the due date, the interest rate will increase to [X]% per annum on the overdue amount until all payments are brought current.
Interest rate clause for annual rate adjustments
This variation applies when the interest rate is adjusted annually.
The interest rate on the outstanding balance will be [X]% per annum, reviewed and adjusted annually based on the [specified index]. The new rate will be applied starting from the first day of the following year.
Interest rate clause with fixed rate during promotional period
This variation applies when there is a promotional fixed interest rate.
The interest rate will be fixed at [X]% per annum for the first [specified period] as part of the promotional offer. After the promotional period ends, the interest rate will adjust to [Y]% per annum.
Interest rate clause for decreasing interest rate based on loan performance
This variation applies when the interest rate decreases based on the loan performance.
If the borrower maintains timely payments and the loan remains in good standing for [specified period], the interest rate will be reduced to [X]% per annum. If payments are missed, the rate will increase back to [Y]% per annum.
Interest rate clause for quarterly payment adjustments
This variation applies when interest rates are reviewed and adjusted on a quarterly basis.
The interest rate will be [X]% per annum for the first quarter. After this, the rate will be reviewed and adjusted quarterly, based on [specified reference rate or market condition], and will apply to the remaining balance.
Interest rate clause for fixed-rate loan with rate reset
This variation applies when the interest rate is fixed for a set period but can reset after that.
The interest rate for the first [specified period] will be fixed at [X]% per annum. After this period, the rate will reset to [Y]% per annum, based on [specified conditions or market index].
Interest rate clause for rate adjustments based on outstanding balance
This variation applies when the interest rate changes depending on the outstanding loan balance.
The interest rate will be [X]% per annum for loans with a balance of up to [specified amount]. If the balance exceeds this amount, the interest rate will increase to [Y]% per annum.
Interest rate clause with penalty for early settlement
This variation applies when a penalty is charged for early settlement.
If the borrower repays the loan before the agreed-upon term, a penalty interest rate of [X]% will apply to the amount paid early. This penalty rate will remain in effect until the full amount is settled.
Interest rate clause for payment timing-based rate increase
This variation applies when the interest rate increases if payments are delayed beyond a certain timeframe.
If the borrower fails to make payments within [specified period] after the due date, the interest rate will increase to [X]% per annum for the overdue balance, compounded monthly.
Interest rate clause for rate determined by risk assessment
This variation applies when the interest rate is based on the borrower’s risk profile.
The interest rate will be determined based on the borrower’s risk profile as assessed by [specified third party]. The rate will be between [X]% and [Y]% per annum, depending on the results of the assessment.
Interest rate clause for interest-free period
This variation applies when an interest-free period is offered.
The loan will not accrue any interest during the first [specified period]. After the interest-free period ends, interest will be charged at a rate of [X]% per annum on the outstanding balance.
Interest rate clause for penalty rate on overdrawn amounts
This variation applies when penalty interest is charged for overdrawn amounts.
Any amounts that exceed the agreed-upon credit limit will incur an additional penalty interest rate of [X]% per annum, calculated monthly on the overdrawn balance.
Interest rate clause for seasonal interest adjustments
This variation applies when the interest rate is adjusted seasonally.
The interest rate on the outstanding balance will be adjusted at the start of each season. During [specified months], the interest rate will be [X]% per annum, and during the remainder of the year, the rate will be [Y]% per annum.
Interest rate clause for increasing rates after each late payment
This variation applies when the interest rate increases after each late payment.
If the borrower fails to make a payment on time, the interest rate will increase by [X]% for each consecutive late payment, up to a maximum of [Y]% per annum.
Interest rate clause with rate tied to borrower’s liquidity
This variation applies when the interest rate is linked to the borrower’s liquidity.
The interest rate will be based on the borrower’s liquidity ratio, with a base rate of [X]% per annum. If the liquidity ratio falls below [specified threshold], the rate will increase to [Y]% per annum.
Interest rate clause for deferred interest
This variation applies when interest is deferred until a certain date.
Interest will be deferred for the first [specified period] of the loan term, after which it will be calculated at a rate of [X]% per annum on the outstanding balance.
Interest rate clause for incremental rate changes
This variation applies when the interest rate increases incrementally over time.
The interest rate will increase by [X]% per annum every [specified period] until the maximum rate of [Y]% per annum is reached.
Interest rate clause for non-refundable interest
This variation applies when the interest is non-refundable.
All interest payments made under this agreement are non-refundable, even if the loan is repaid early. The interest rate will be [X]% per annum on the full amount, regardless of early repayment.
Interest rate clause for split rate depending on payment period
This variation applies when different interest rates are applied based on the payment period.
The interest rate will be [X]% per annum if the loan is paid off within [specified period]. If the loan term extends beyond this period, the interest rate will increase to [Y]% per annum.
Interest rate clause with an adjustable rate based on the principal balance
This variation applies when the interest rate adjusts based on the loan’s principal balance.
The interest rate will be [X]% per annum for any remaining balance below [specified amount]. If the balance exceeds this amount, the rate will increase to [Y]% per annum.
Interest rate clause with a monthly compounding adjustment
This variation applies when the interest is compounded monthly.
Interest on the loan will be calculated at a rate of [X]% per annum and compounded monthly. The new balance will reflect the compounded interest at the end of each month.
Interest rate clause with rate changes for changing market conditions
This variation applies when the interest rate is adjusted according to changing market conditions.
The interest rate will be adjusted every [specified period] based on [specified market condition]. The new rate will be calculated and communicated to the borrower at the beginning of each adjustment period.
Interest rate clause with early settlement benefit for large repayments
This variation applies when large repayments result in a better interest rate.
If the borrower repays [specified percentage] of the loan balance early, the interest rate will be reduced by [X]% per annum for the remaining balance.
Interest rate clause with interest rate tied to loan purpose
This variation applies when the interest rate varies based on the purpose of the loan.
The interest rate will be [X]% per annum for loans used for [specified purpose]. If the loan is used for a different purpose, the interest rate will increase to [Y]% per annum.
Interest rate clause for inflation-linked adjustments
This variation applies when the interest rate is linked to inflation.
The interest rate will be adjusted annually based on the inflation rate as measured by [specified index]. The rate will increase or decrease based on the inflation rate, and the new rate will take effect at the start of each year.
Interest rate clause for interest on deferred payments
This variation applies when interest is charged on deferred payments.
Interest at a rate of [X]% per annum will accrue on any deferred payments. The deferred payments will be calculated and added to the principal balance, with interest compounded monthly.
Interest rate clause for rate reduction based on payment frequency
This variation applies when interest rates are reduced based on the payment frequency.
If the borrower elects to make payments on a [specified frequency, e.g., monthly/quarterly] basis, the interest rate will be reduced to [X]% per annum, compared to the standard rate of [Y]% per annum for other payment frequencies.
Interest rate clause for variable rate adjustment based on performance
This variation applies when the interest rate adjusts based on the borrower’s performance.
The interest rate will initially be [X]% per annum. If the borrower maintains a good financial performance, the rate will decrease by [Y]% after [specified period]. If performance worsens, the rate will increase to [Z]% per annum.
Interest rate clause for non-payment surcharge after a grace period
This variation applies when a surcharge is added after a grace period.
Any overdue amounts after the grace period of [X] days will be subject to a surcharge of [Y]% on the outstanding balance. This surcharge will be added to the interest rate applied to the loan.
Interest rate clause with adjustments for partial prepayment
This variation applies when interest is adjusted after partial prepayment.
If the borrower makes a partial prepayment, the interest rate will be recalculated on the remaining balance, and the new rate will be applied from the date of the prepayment.
Interest rate clause for flat-rate calculation with early settlement option
This variation applies when interest is calculated as a flat rate, with an option for early settlement.
Interest will be charged at a flat rate of [X]% per annum. If the borrower repays the loan in full before the agreed date, the total interest due will be reduced by [Y]% of the calculated interest amount.
Interest rate clause with a one-time rate adjustment
This variation applies when the interest rate is adjusted once after a certain period.
The interest rate for this loan will be adjusted once after [specified period] to [Y]% per annum. This rate will remain fixed for the remainder of the loan term unless otherwise specified.
Interest rate clause with no penalty for early repayment
This variation applies when there is no penalty for early repayment.
The borrower may repay the loan early at any time without incurring any penalties. The interest rate will remain fixed at [X]% per annum for the entire duration of the loan term.
Interest rate clause for market-dependent rate
This variation applies when the interest rate depends on market conditions.
The interest rate for the loan will be based on the current market rate for loans of similar terms, plus [X]% per annum. This rate will be adjusted periodically based on fluctuations in the market.
Interest rate clause with fee for adjusting rate terms
This variation applies when a fee is charged to adjust the interest rate terms.
A fee of [specified amount] will be charged if the borrower requests a change in the interest rate terms. The new rate will be effective [specified number] of days after the change request is approved.
Interest rate clause with performance-linked rate
This variation applies when the interest rate is linked to the borrower's performance.
The interest rate will initially be set at [X]% per annum. If the borrower achieves the agreed financial performance targets, the rate will be reduced to [Y]% per annum for the remainder of the term.
Interest rate clause with adjustable rate based on risk profile
This variation applies when the interest rate is adjusted based on the borrower’s risk profile.
The interest rate will be based on the borrower’s risk profile, assessed annually by the lender. The rate may be adjusted depending on changes to the borrower’s financial standing and other relevant factors.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.