One of the most common questions borrowers ask is whether to pick a fixed or a floating interest rate. Both have pros and cons.

Fixed rate

Your EMI stays the same for the agreed period, giving predictability — but fixed rates are usually higher.

Floating rate

The rate moves with the market benchmark. It is typically lower to start and benefits you when rates fall, though EMIs can rise when rates increase.

For long-tenure home loans, many borrowers prefer floating rates; for short-tenure loans where certainty matters, fixed can be attractive.