Before making a borrowing decision, understand the important concepts and questions. The following guide is a general explanation, not a personalized lender offer.
Fixed-rate borrowing
A fixed rate generally remains unchanged for the agreed fixed-rate period, subject to the contract. Read the terms closely: some products have an initial fixed period only.
Floating-rate borrowing
A floating rate can change as a specified benchmark or lender policy changes. EMI, tenure or both may change under the loan agreement.
How to choose
Compare effective total cost, fees, repricing terms, foreclosure conditions and your comfort with payment variability rather than only the initial advertised rate.
This article is educational, not personalized financial, tax or legal advice. Lender rules, interest rates and applicable requirements can change; confirm the current terms with a regulated lender and a qualified professional.