I want home loan for the period of 20 years. Home loan amount is 45 lakhs & i want for duration of 15 years. I am confused between these 2 options, Please suggest
1 Answers
What's the duration of fixed loans? Generally all banks offer fixed loan for period of 2 to 3 years & after that it gets convert to Floating interest rate. PNBHFL offers fixed loan for period of 10 years so you can try that as well. If the difference between fixed & floating is more than 1% than you can think of going with floating rate otherwise fixed is a better option. Currently difference in the market is not more than 0.5% between fixed and floating. Fixed is better for individuals who want to make fixed monthly payments to avoid negative impact on their monthly budgets & the borrower has total clarity about the EMIs and interest to be paid during the loan period.
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