Floating or Fixed Home Loan

POSTED BY Jitendra ON April 16, 2012 3:34 pm COMMENTS (5)

I am planning to get home loan for a property already been identified. Below are details.

Home Loan Amount : 20,00,00 Lac
Tenure : 10 Years.

I am bit confused whether I should go for fixed or floating Rate.
Also It would be helpful if anyone suggests me regarding the bank from which I should go for home loan with type of home loan.


5 replies on this article “Floating or Fixed Home Loan”

  1. Raja Mohamed says:


    Good timing with the answer, as RBI just announced cuts in loan rates 🙂

    1. Dear Raja, the writing was on the wall. It was only a matter of time, when RBI ‘ll bite the bullet & now finally it has. Interestingly it has done more than the expectation of the people – 50 basis point when every body was thinking only 25 basis points.



      1. Jitendra says:

        Hi Ashal,

        LIC Housing is providing home loan with below Rate of interest.

        1>> Fixed for 3 years @ 10.70 %
        2>> Floating @ 10.40 %

        I got advice from friends that I should go for option 1 , i.e., Fixed, because In future interest rate will be increasing. Can you pls advice on the same,

        Thanks in advance.

        1. Dear Jitendra, for next 3Y term, my call ‘ll be to go for 10.4% floating rate. From here on wards, the interest rates ‘ll decline & any increase is not going to happen in near future.



  2. Dear Jitendra, Please opt for a floating rate loan as interest rates are at peaks & from here on wards only way is down wards. Please avail SBI Max Gain Home loan for yourself. Please contact the nearest SBI branch for more details or search the forum for some prev. discussions.



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