What is "floorlet"

n. (context finance English) A component of an http://en.wikipedia.org/wiki/%20interest%20rate%20cap%20and%20floor, a derivative instrument that effectively prevents the interest payments on an otherwise variable-rate loan from falling below an agreed level (the "floor"). Each "floorlet", analysable as a http://en.wikipedia.org/wiki/%20put%20option, covers one interest accrual period (such as three months); the whole interest rate floor is made up of a series of consecutive floorlets.