When availing Loan Against Property, the question of which one to choose between fixed vs floating interest rate is a common point of confusion among borrowers. Bajaj Finserv offers Mortgage Loan at both fixed as well as floating rates of interest.
The choice of interest rate type, however, depends on your suitability. Choosing a suitable interest rate wisely is important because of the following reasons.
i. It affects a person’s repayment plans.
ii. It impacts the EMI amount.
Know the two types of Loan Against Property interest rates properly before deciding which one is better.
What is Fixed Rate of Interest?
It implies that the interest rate at which you avail the loan is fixed for the entire loan tenor. Your EMIs are not affected by market fluctuations.
You may opt for a fixed rate of interest on Loan Against Property if there are chances of increase in the lending rates. However, in the case of falling trends, a fixed interest rate may prove costlier.
Generally, fixed rates of interest are 1 to 2% higher than floating rates.
What is Floating Rate of Interest?
A floating rate of interest is one which varies depending on the changes in market rates. Bajaj Finserv charges mortgage loan interest rates based on Bajaj Finserv Limited floating reference rate.
Check out the mortgage interest rates Bajaj Finserv offers to both self-employed and salaried individuals on Loans Against Property.
Opting for a floating rate of interest is beneficial when the lending rates are high. Individuals opting for a floating rate of interest on Bajaj Finserv Loan Against Property can also choose to part-prepay or foreclose their loan accounts at nil charges.
What is Fixed Interest Rates
Is Floating Interest Rates better?
Fixed Vs Floating Interest rate – Which One is Better?
Choice of interest rate depends on your requirements, whether you want certainty and security, or choose to go with the market trends. Bajaj Finserv offers Loan Against Property at competitive rates, which makes it one of the best options to avail.
So, choose your preferable rate, calculate your monthly outflow with the Loan Against Property EMI calculator and avail multiple benefits on offer.