1 month, 2 weeks ago

Fixed vs floating interest rates: Which option to choose?

Selecting the right home loan interest rate, whether fixed or floating, can be a daunting task. FIXED INTEREST RATES Choosing a fixed interest rate means your Equated Monthly Instalments remain the same throughout the loan tenure. FLOATING INTEREST RATES Floating interest rates vary according to market conditions. However, an individual can go with a floating rate if he/she expects interest rates to decline or is open to market fluctuations. Further, those opting for loan tenures of 3 to 10 years can opt for a fixed rate, while floating rates are usually more beneficial for 20 to 30-year loans.

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