Capped Rate Loan

The Capped Rate Loan is a version of the floating rate loan but adds the assurance of a preset rate ceiling. An arrangement fee is likely necessary in order to establish a capped rate arrangement.  This fee can be paid up front or rolled into the initial loan balance.

Benefits of the Capped Rate Loan

  • Removes uncertainty of rate exceeding a predetermined level
  • Client is able to dictate the exact extent of their loan cost appetite 
  • Client maintains flexibility of the Premier Loan product

 

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