Monica Malik Instagram – Considering a Home Loan? Your banker might advocate for a Fixed Interest option. Why? Fixed Interest loans generally carry higher rates than floating ones. Here, the interest remains constant during the loan term, ensuring predictable cash outflow for a set duration. Worried that choosing Floating interest rates will lead to fluctuating EMIs?
No need to worry. Banks usually adjust the loan tenure to maintain a consistent EMI with floating rate loans. Thus, your EMI remains steady in both scenarios. The difference lies in the possibility of a longer repayment period if the market base rate rises, and vice versa. Now, can you foresee future interest rates?
Chances are you can’t. Opting for a Floating interest rate loan makes more sense, as it adjusts with changing interest rate cycles, unlike a Fixed Interest rate loan.
Disclaimer- The information provided on our platform is intended only for simplification and education purposes, and should not be considered as an investment advice.
#finance #financetips #investment #investingtips #education #financialfreedom #financialliteracy #reelsindia #reelkarofeelkaro #explore #loan | Posted on 29/Aug/2023 13:20:33
