Which one is better: floating or fixed rate home loan | By ResaleAdvisor
Which one is better: floating or fixed rate home loan | By ResaleAdvisor When it comes to choosing between a floating or a fixed-rate home loan, it is important to consider your financial situation and what kind of risk you are willing to take. In the Indian market, home loans are available in both floating and fixed-rate options and thus, it is important to understand the advantages and disadvantages of both before making a decision. A floating-rate home loan is a loan where the interest rate is linked to the Reserve Bank of India (RBI) repo rate. This means that the interest rate fluctuates with the market and is subject to change. The main advantage of a floating-rate home loan is that it is typically lower than a fixed-rate home loan. This makes it an attractive option for those who want to save money on interest payments. Additionally, if the repo rate falls, your floating-rate home loan will become cheaper as the interest rate will decrease. However, there are also some ris...