Opt for Fixed Rate or Floating Rate Home Loan? Which is Best
                     Opt for Fixed Rate or Floating Rate Home 
Loan? Which is Best
The Basics of Home Loan
• Now that you have applied for a 
home loan, you need to think about 
the right rate of interest. Well, a rate of 
interest is an important component to 
avail of a home loan. It plays a huge 
impact on your borrowing experience. 
However, there are two types of rate of 
interest- fixed rate and floating rate of 
interest. It completely depends on you 
to choose one based on your needs. If 
you need the right borrowing 
experience, make sure you choose the 
right type. Before that, make sure you 
have a complete understanding of both 
types to make the right decision. 
What is a fixed rate of interest? 
• A fixed-rate of interest is the most common 
form of interest. This is very commonly 
found in various financial institutions. 
Here, the rate of interest is fixed from the 
time of loan approval to loan repayment 
end tenure. This rate of interest will not 
change under any circumstances. No factor 
can change the rate of interest. It remains 
fixed for the entire tenure. Factors like loan 
providers, market conditions cannot make 
any changes in the loan interest rate. This 
fixed rate of interest will help you manage 
your finances and there will be no ups and 
downs in the rates. The EMI will remain 
fixed without any changes. Read More : 
Business loan in india.
What is a floating rate of interest? 
• A floating rate of interest is opposite to the 
fixed rate of interest. In a floating rate, the 
rate will keep changing throughout the 
loan tenure. It is subjected to various 
factors that are responsible to bring in 
change. The market conditions are 
completely responsible for this change in 
the rate of interest. You may get a low rate 
sometimes and then a high one as per the 
market conditions. The rate can go down 
or can rise too. However, this will affect the 
EMI. It will be difficult to understand your 
EMI and then take the right financial steps. 
When EMI goes up or down, there will be a 
lot of hurdles in managing your debt. 
Wrapping up
• In a nutshell, both fixed and 
floating rate has advantages and 
disadvantages. You need to think 
about your individual needs and 
financial condition before 
choosing one. Keep your home 
loan eligibility criteria right so 
that you can go for a fixed and low 
rate. Too many variations with a 
floating rate can affect your 
finances in a bad way. 
Clix Capital Services Private Limited
 Address: 4th Floor, Kailash Building, Kasturba Gandhi Marg, Connaught Place, New 
Delhi-110001
 Call us: 1800 200 9898
 Email us: [email protected]
 Website: www.clix.capital