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Real Estate Forum on Floating Rate Loan

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Latest Answer: Hi All, I need an expert advice on my home loan. What should I do to change my EMI? Will there be any charges if I want to change my EMI?
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Q: I am planning to take a home loan for purchasing a ready-made house. Before I proceed, I would like to know about the difference between fixed rate loan and floating rate loan.

Latest Answer: A fixed rate loan means there will be no change of interest rate and you can pay the fixed interest rate set, till your last loan tenure. There will be no change in the interest rate during the entire term of the loan. While in floating rate loan, the interest rate is not constant. If the interest rate drops in the market, you have to pay your interest according to it.
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