What a fixed rate means
A fixed rate remains unchanged for the period specified in the agreement. Check whether that period covers the entire loan or only an initial phase. Do not assume the label alone explains every reset or conversion condition.
What a floating rate means
A floating rate may change under the benchmark and adjustment rules in the loan agreement. A change can affect the EMI, repayment period or both, depending on the product and lender’s process. Ask how and when changes are communicated.
Compare more than the starting rate
Two offers with similar opening rates may have different fees, reset rules or early-repayment conditions. Compare written terms on the same amount and tenure so the difference is easier to understand.
Questions worth asking
- What determines a rate change and how often can it happen?
- Is there a fixed-rate period or a later reset?
- How would a rate increase affect my EMI or tenure?
- Can the rate type be changed and would that carry a fee?
- What are the part-payment and prepayment conditions?
Plan for a range of outcomes
Use the calculator with more than one illustrative rate to see how repayment changes. This is a planning exercise rather than a prediction of future interest rates. Choose only after considering your circumstances and the final lender terms.