Fixed vs Floating Interest Rates

Fixed Rate

A fixed interest rate stays the same during a specified period or the full loan tenure, giving predictable EMIs and easier budgeting.

Floating Rate

Floating (or variable) rates move with market benchmarks (like MCLR or Repo rate). EMIs can change, which can lower costs when rates fall but increase payments when rates rise.

How to choose

• Choose fixed if you value payment certainty and interest-rate stability.
• Choose floating if you can manage variability and expect rates to fall or stay low.

Compare both scenarios in the EMI Calculator to see the long-term impact on total interest and monthly payments.