Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is the Fixed Rate of Interest and Floating Rate of Interest?

April 26, 2017fixed floating rate rate

0

Posted

What is the Fixed Rate of Interest and Floating Rate of Interest?

1 Answer

0

Posted

Ans : Fixed Rate of Interest means that the interest rates remain FIXED for the entire duration the loan or for a specific period. This basically means that you do not benefit, even if the rates of interest drop in the market at the same time you are protected in case if there is an up-side movement in the interest rate. And Floating Rate of Interest is the rate of interest that fluctuates according to the market lending rate.