A "floating interest rate" is also known as a variable rate loan, adjustable rate loan, or flexible rate loan. The interest rate on these loans fluctuates based on various factors, such as market conditions, inflation rates, and the lender's discretion. This is in contrast to a fixed interest rate loan, where the interest rate remains constant throughout the term of the loan. The advantage of a floating interest rate loan is that when rates are low, the borrower pays less interest. However, when rates increase, the borrower pays more. Therefore, those considering a floating interest rate loan should carefully consider their financial situation and ability to handle potential rate increases.