The interest rate banks charge on such loans must be greater than the interest rate they pay to obtain the funds initially — the cost of funds. (investopedia.com)
But these are adjustable - rate loans based on the prime rate — the floating interest rate banks charge their best commercial customers — plus an additional fixed rate. (interest.com)
Many times, the interest rate a bank offers you for an auto loan will be higher than the interest rate available to you on your home equity line of credit. (fidelity.com)