Learn more about Interest Rate Derivatives

Interest Rate Cap- the Seller of the Cap agrees to compensate the Buyer, whenever a reference interest rate (e.g. LIBOR) exceeds a pre-agreed level (Cap Rate) for a period at specified intervals. Premium is payable upfront and calculated using an agreed notional principal amount.

Interest Rate Floor- the Seller of the Fllor agrees to compensate the Buyer, whenever a reference interest rate (e.g. LIBOR) fixes below a pre-agreed level (Floor Rate) for a period at specified intervals. Premium is payable upfront and calculated using an agreed notional principal amount.

Eligibility

Any customer who is holding a proper underlying transactions and having a good understanding about products in this nature is eligible to apply for Interest Rate Derivatives.

Applying for Interest Rate Derivatives

Completion of specific documentation is required. Please contact the Treasury Dealing Room on 0112486325 for more details

Terms & conditions apply
Product information and terms & conditions are subject to change from time to time. Therefore, it is advisable to contact the branch nearest to you for the latest information and prevailing terms & conditions.