Floating Rate
Loans term
A floating interest rate moves up and down over the life of a loan, tracking a benchmark such as the RBI repo rate.
Your EMI or tenure changes whenever the benchmark resets. Most home loans are floating; they are cheaper than fixed rates on average but carry the risk that EMIs rise if rates go up.
More loans terms
EMIAn EMI is the fixed amount you pay your lender every month until a loan is repaid — covering both interest and principal.Reducing BalanceReducing-balance interest is charged only on the outstanding loan balance, which shrinks with every EMI — so the interest portion falls over time.Loan TenureThe tenure is the total length of a loan — the number of months or years over which you repay it.PrepaymentPrepayment is paying off part or all of a loan ahead of schedule, which directly reduces the outstanding principal.CIBIL ScoreA CIBIL score is a 3-digit number (300–900) summarising your credit history, used by lenders to decide whether to lend and at what rate.