Interest rates refer to the percentage rate at which a borrower is charged for borrowing money or the rate at which a lender is paid for lending money. Interest rates can apply to various financial products, including loans, credit cards, mortgages, and savings accounts, among others.

The interest rate on a loan or credit product is typically set by the lender based on a number of factors, including the borrower’s creditworthiness, the length of the loan term, and prevailing market conditions.

Higher interest rates can result in higher monthly payments and total repayment costs for borrowers, while lower interest rates can reduce the overall cost of borrowing.

Interest rates can also impact the economy and financial markets, as changes in interest rates can affect borrowing and lending behaviors, inflation, and overall economic growth.