prime rate

noun Banking.
the minimum interest rate charged by a commercial bank on short-term business loans to large, best-rated customers or corporations.
Also called prime, prime interest rate, prime lending rate.


Origin:
1955–60

Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2013.
Cite This Source Link To prime rate
Collins
World English Dictionary
prime rate
 
n
the lowest commercial interest rate charged by a bank at a particular time

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009
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00:10
Prime rate is always a great word to know.
So is slumgullion. Does it mean:
a fool or simpleton; ninny.
a stew of meat, vegetables, potatoes, etc.
American Heritage
Cultural Dictionary

prime rate definition


The interest rate that banks charge to corporations that are considered excellent risks.

Note: The prime rate is usually the lowest prevailing interest rate; if it rises, rates available to consumers will soon rise.
The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Example sentences
Loans will be amortized at one point below prime rate on the date of loan
  closing over a fifteen year term.
As a rule, credit-card rates are quick to rise along with the prime rate, but
  fall more slowly.
The general interest rate will be two points above the current prime rate.
Its business customers include payday lenders, rental purchase stores and
  non-prime rate auto lenders.
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