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Is floating rate of interest a better option than fixed rate of interest?

April 26, 2017fixed floating option rate

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Is floating rate of interest a better option than fixed rate of interest?

2 Answers

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In case of falling interest rates, a loan taken on floating rate of interest is a better option but when the interest rates are rising, opt for a fixed rate loan. If you go for a fixed rate loan, you will know in advance what your EMI’s will be. This will help you in your financial budgeting. If you opt for a floating rate, you may not be able to budget properly.

0

Posted

In case of falling interest rates, a loan taken on floating rate of interest is a better option but when the interest rates are rising, opt for a fixed rate loan. If you go for a fixed rate loan, you will know in advance what your EMI’s will be. This will help you in your financial budgeting. If you opt for a floating rate, you may not be able to budget properly.