A minimum interest rate set in a loan agreement or financial product, ensuring that the rate cannot fall below a specified level, even if market rates decrease. It protects lenders by guaranteeing a baseline return on the loan.
CRE Glossary
A minimum interest rate set in a loan agreement or financial product, ensuring that the rate cannot fall below a specified level, even if market rates decrease. It protects lenders by guaranteeing a baseline return on the loan.
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