Loan rates describe the going cost associated with borrowing money. This cost is applied when a person or borrows financing from banks, commercial lenders and other financial organizations for a variety of purposes. Rates equate to the interest placed on loan principal as described in a percentage charged on an annual basis. Loan rates can be pegged to a number of different economic indicators, including the prime rate, mortgage bond rates and more. While going rates might be described by a certain number, the actual rate charged to a consumer can hinge on the amount borrowed, where it is borrowed from and the credit standing of the applicant.