When someone says variable equity loan, you should take that to mean flexible repayment scheme. Whenever the interest rate goes down, your repayment will be reduced too. However, if the interest rate rises, your repayment will increase as well. Most borrowers prefer to apply for loans on a variable scheme, because it’s much easier to start with lower repayments. In comparison, fixed equity loans require the borrower to repay the same amount every month, regardless of whether the interest rate changes or not. All commercial loans are provided with variable repayments, while some banks offer personal loans with similar plans.