Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
A floating interest rate keeps changing on a periodic basis, as compared to a rate of interest that remains absolutely fixed or unchanged. These floating interest rates are usually seen in case of mortgages or home loans, and often in the case of credit cards as well. They are tied to specific indexes or benchmarks.
Floating interest rates have a direct impact on home loan or mortgage interest rates. Naturally, this has a bearing what home buyers pay on their mortgages every month and annually. This also impacts their overall interest outgo. A large number of home loans sanctioned in recent times are also linked to floating interest rates.
