With a cap loan, the interest rate is variable - but it has an upper limit - the cap that gives it its name. In exchange for the cap, you pay a so-called cap premium, which depends on the cap and the term.
If there is an upper limit, there is of course also a lower limit – the so-called floor. This then lowers the premium again.
For private investors, however, the cap loan is not a very common form of loan. You can find out more about the types of loans that are granted in our podcast episode "Alles Annuitätendarlehen, oder was?".
Note: German audio only