NEWS & ADVICE : HOME LOANS
Are fixed home loan rates actually ‘fixed’?
By Vaibhav Aggarwal
Print    Email    RSS   

Have you ever wondered what the difference between a floating home loan rates and fixed home loan rate is?

Is the difference as apparent as it seems to be, or is there more to what lies inside that meaning?

Is the ‘fixed’ rate of interest really fixed?

Gone are the days when taking loans was an unheard of exercise. These days, taking loans is one of the most common practices seen in not only urban, but rural India. One of the most common and most sorts after loans is the housing loan. The impact of the increased economic activity on the Indian consumer, in addition to a favorable housing retail market has lead to an increase in demand for house loans.

The next obvious step following the decision to avail a home loan, is to choose between fixed and floating rate of interest. This is a perfect example of a catch 22 situation. This is also where the banks step in, and with that brings a plethora of choices, and confusion!

The present condition of India, where inflation seems to have gripped the nation, has brought to light many new developments in the lending rates charged by banks. Home loans haven’t been able to escape the test of revision also. Media has closely followed every bank’s revision of their home loan rates, and this has perhaps leaded to the confusion in the minds of the people. When news media splashes reports on banks increasing home loan interest rates in India and their impact on Equated Monthly Installment (EMI), you deem it better to opt for fixed home loan rate. The fact that your banker also advises you to go for the same doesn’t help either. However, should you actually be doing it? Is it really a wise decision to go for ‘fixed’ interest rates?

Ideally, one assumes, that ‘fixed’ would mean, what it should mean, something which doesn’t change, something which remains permanently decided. One also assumes that once you have selected ‘fixed rate plan’ for yourself, the rate of interest will remain unchanged over the entire tenure of the repayment period irrespective of any subsequent increase in the same.


Page  | 12 |  
(Comments Posted : 5) Post Your Comments
1. According to www.housing.com, Your EMI remains the same irrespective of the conditions prevailing in the market. For more details, Please visit https://housing.com/in/home-loans/faq/61-pros-and-cons-of-fixed-rate-home-loan
Sachin (Posted: Oct 20, 2015)
2. Do you need a quick long or short term loan with a relatively low interest rate as low as 3%? We offer business loan, personal loan, home loan, auto loan,student loan, debt consolidation loan e.t.c. no matter your credit score.

* Personal Loans (Secure and Unsecured)
* Business Loans (Secure and Unsecured)
* Mortgage Loans (Secured and Unsecured)
* Consolidation Loan and many more.

Contact US for more information about loan offer and we will solve your financial problem. contact us via email: zionloanfirm.ltd@aol.com
Richelle Watford (Posted: Mar 25, 2015)
3. Thank u sir for your valuable information. Generally people don't know how different banks cheat them through various "Terms & Conditions". Banks should not be allowed to use "Fixed" interest rate term in this case..
Dipesh Modha (Posted: May 31, 2013)
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
12 point conduct checklist for bank and...
A chronicle of excesses by loan recovery...
Home Loan: A way to reduce your taxable...
Tax Planning for Working Women in India
A chronicle of excesses by loan recovery...


HOW CAN I GET MY LOAN A/C STATEMENT
my home loan A/C is 33019926786. want to view status...
PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive