- Ensures an affordable hedge against rising interest rates.
- Full benefit in case of falling interest rates.
- Cost-effective single payment “insurance” for the company’s cash management.
- Interest rate cap will be valid for the chosen period, usually between 3 and 10 years.
Features of loan with interest rate cap for companies
A rise in interest rates may have a material impact on the total costs of a loan. You can protect your company at a competitive price against an increase in the reference rates according to an agreed interest rate cap percentage. During the validity of the interest rate cap the maximum interest on the loan is the interest rate cap agreed for the reference rate, added with a margin.