Loans5 min read
A floating-rate home loan moves with the RBI repo rate; a fixed-rate loan stays constant for a set period. Most Indian borrowers are on floating rates.
Floating rate
Usually 1–2% cheaper to start, and you benefit when rates fall. The risk: your EMI (or tenure) rises when rates climb.
Fixed rate
Predictable EMIs, useful if you're on a tight budget or expect rates to rise. You pay a premium for that certainty, and prepayment penalties can apply.
Model both in the EMI calculator, and check how prepaying even a little slashes total interest.
Sources
Reviewed against primary sources. Rates and rules change — confirm current figures with the official source before acting.
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