Prefer Floating Interest Rate Home Loans

With the inflation moving up and slowdown of the economy, owning a Dream Home has now become a dream not easy to turn into reality. Even if all the documents are in place, the whole procedure completed and loan is approved by the bank to fulfill your dream, you will be one step away. It is difficult to decide whether to opt for fixed interest rate or floating interest rate.

In the Fixed rate, one has to pay fixed EMIs whether the market goes up or down. You can’t enjoy the benefits of decreased lending rates when market goes down.

While opting for floating rate, if the lending rate decreases, EMIs goes down and vice-versa follows.

Both have its pros-cons but floating interest rate is always lower in the initial years of loan. So it is better to enjoy low EMIs for first few years.