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

Examples from the web for prime rate

As a rule, credit-card rates are quick to rise along with the prime rate, but fall more slowly.
The prime rate is used for many short-term consumer and business loans.
Its business customers include payday lenders, rental purchase stores and non-prime rate auto lenders.
Loans will be amortized at one point below prime rate on the date of loan closing over a fifteen year term.
Rates are pegged to no more that four percent over the prime rate.
The general interest rate will be two points above the current prime rate.

British Dictionary definitions for prime rate

noun

the lowest commercial interest rate charged by a bank at a particular time

prime rate in Culture

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.