Compare Loans: It bemes all the more complicated when you have to choose between fixed rates and adjustable rates or have to compare loans with different terms of payment.
Borrower will have the benefit of switch to fixed rate interest scheme at the time when interest rates are low but there are also hurdles with this like under this type of switch from Floating Rate to Fixed Rate may result loss to money lender, so money lender have his own plans of safeguard by imposing switching charges for switching to alternate scheme and Fixed Rate EMI Loans are charged at a high Rate of Interest than Floating Rate of EMI Loans it’s up to 2% higher.
Thus, in a scenario when interest rates increase by 2%, a floating rate loan taken at 11% can still be cheaper than a fixed rate loan taken at 13.5%. Also, when interest rates fall, borrowers can gain significantly by choosing to lower installments, or by reducing the loan tenure by continuing to pay the same installment or EMI.
A fixed rate loan is a loan wherein the monthly repayment installments are equal for the duration of the loan period that you have agreed with the bank.
EMI stands for Equated Monthly Installments is the payment that you give for any loan undertaken for a fixed tenure to pay off the loan amount.
a fixed platform of property loan facilitates their clients various types loan such as Home Loan and EMI Calculator etc., which provides best deal by charging Comparatively lower Home Loan Interest Rates.
Since EMI is the fixed amount that you will need to pay to the bank towards repayment of your Loan, calculating the EMI helps you to plan your monthly budget “Compare Loans”.
The explanation for how to use this calculator for the purpose of maintaining fixed or unchanged EMI under floating rate of interest EMI Loans is explained under heading How to Maintain a Fixed or unchanged EMI or Installment under Floating Rate of EMI Loan” see below.
But still even the interest rates change frequently, the borrower can have the facility of maintaining the EMI or installments fixed or unchanged till total loan amount is repaid or till some extend by using ‘ Multipurpose EMI Calculator or 3 Types of EMI Calculator’, which is designed by this blog, you can do this with the consent of money lender cum by using this calculator cum little bit of planning of yours which I will help how to plan.
There is a fixed tenure within that period of time you need to repay the Compare Loans amount along with interest payment and other fees charged by the lender.
Also, for some banks even fixed rate loans are not truly fixed, and they may put in terms that allow them to change the rate if market rates increase drastically.
Our experienced specialists will help you every step of the way – and if you decide that predictable monthly payments for a fixed term is best for you, they’ll help you with a Fixed-Rate Loan Option.
These banks offers either fixed rates or floating rates for the loans.