What is the reset period in a loan?

Every loan agreement that has a floating rate of interest has a reset period which is the time when changes will occur to the interest rate on the loan.

The benchmark rate determining the floating rate might change at any point.

This does not mean that the change is applicable from the next day to the individual borrower.

For a particular borrower the rest period is when the changes will be reflected.

A reset period could be every quarter or even half yearly or annually.