A floating interest rate, also known as a variable or adjustable rate, can apply to any type of debt, such as a loan, bond, mortgage, or credit, that does not have a fixed rate of interest over the life of the loan. In Floating Rate of Interest, the rate of interest varies over the tenure of the loan, however, it moves in tandem with Floating Rate Index that can be periodically reset, and be calibrated using Margin Rate. 

Floating Interest Rate =  Floating Rate Index + Margin Rate