Basics
What is Interest Rate? — Meaning, Definition & Example
Definition
Interest rate is the cost of borrowing money or the return earned on deposits/investments, expressed as a percentage per annum. Types include fixed rate (stays same), floating rate (changes with repo rate), and reducing balance rate (calculated on remaining principal).
💡 Real Example
A home loan at 8.5% floating rate means if RBI cuts repo rate by 0.25%, your loan rate may reduce to 8.25%, lowering your EMI.
🇮🇳 Interest Rate in Hindi / हिंदी में
ब्याज दर — ब्याज दर पैसे उधार लेने की लागत या जमा/निवेश पर अर्जित प्रतिफल है, जो प्रति वर्ष प्रतिशत में व्यक्त की जाती है।
Interest Rate (Hinglish) — Interest rate paisa udhaar lene ki cost ya deposits/investments pe milne wala return hai. Fixed rate, floating rate, aur reducing balance rate main types hain.
❓ Frequently Asked Questions
What is Interest Rate in simple words?
Interest rate is the cost of borrowing money or the return earned on deposits/investments, expressed as a percentage per annum. Types include fixed rate (stays same), floating rate (changes with repo rate), and reducing balance rate (calculated on remaining principal).
Can you give an example of Interest Rate?
A home loan at 8.5% floating rate means if RBI cuts repo rate by 0.25%, your loan rate may reduce to 8.25%, lowering your EMI.
What is Interest Rate meaning in Hindi?
In Hindi, Interest Rate is called ब्याज दर. ब्याज दर पैसे उधार लेने की लागत या जमा/निवेश पर अर्जित प्रतिफल है, जो प्रति वर्ष प्रतिशत में व्यक्त की जाती है।