In India, home loan interest rates can be categorized into two types: fixed and floating rates.

Fixed Interest Rates: With a fixed interest rate, the interest remains constant throughout the loan tenure. This means that the equated monthly installments (EMIs) also remain the same over the specified period. Fixed interest rates offer stability and protection against interest rate fluctuations. However, the initial fixed-rate period is typically limited, and once it expires, the interest rate may be revised based on prevailing market conditions.

Floating Interest Rates: Also known as variable or adjustable interest rates, floating rates are linked to a benchmark rate such as the Marginal Cost of Funds based Lending Rate (MCLR) or the Repo Rate. These rates can fluctuate during the loan tenure based on market conditions or changes in the benchmark rate. If the benchmark rate increases, the interest rate on your loan will also increase, leading to higher EMIs. Conversely, if the benchmark rate decreases, the interest rate and EMIs may decrease as well.

It's important to note that lenders may offer different interest rates based on factors such as your credit score, loan amount, loan-to-value ratio, and repayment capacity. Additionally, the Reserve Bank of India (RBI) periodically reviews and adjusts the policy rates, which can impact interest rates offered by banks and financial institutions.
Every LIKE, COMMENT & SUBSCRIPTION is appreciated.
If you learn something valuable then share it as much as you can.

Open Dmate A/C with Zerodha:
[ Ссылка ]

OUR CHANNEL: [ Ссылка ]

DISCLAIMERS:
This content is for educational and entertainment purposes only. We do not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
All provided information is based on my research on the internet. I can't be sure of all the facts.

#homeloan #banks #intrestrate

свернуть