As of now, there are two variants of housing loan offered in India: floating interest rate loan and fixed interest rate loan. Though both of them are based on MCLR system of lending, there’s a huge difference between the two. Hence, it becomes a bit difficult for first-time home buyers to make the right choice. So, how can you decide which home loan rates type is better one? Read on to find out the answer.
Pros of fixed interest rate home loan:-
Cons of fixed interest rate home loan:-
Perks of floating interest rate home loans
Cons of floating interest rate home loans
Summing up, both fixed and floating interest rates have their own benefits and pitfalls. Thus, selecting an interesting type is always a personal choice as one should opt for one depending on his/her current income, existing debts and more.
Reference Read: Floating vs Fixed Rate – Which Interest is Best for Home Loans
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.