Applicable Margin (Banking & Finance Glossary)

Summary

The spread over a benchmark interest rate (such as LIBOR, Alternate Base Rate or the equivalent) that a Lender charges on a loan. The Applicable Margin typically increases if the Borrower’s Credit Rating falls below a certain level. The Applicable Margin for Eurodollar Loans is generally 100 Basis Points higher than the Applicable Margin for Base Rate Loans.