Whether you’re taking a home loan, personal loan, or business loan, one of the biggest decisions you’ll make is choosing between a fixed interest rate and a floating interest rate. This choice can significantly impact your monthly repayments and the total cost of your loan.
At Vizzve Finance, we help you understand these options and choose the one that aligns with your budget, risk appetite, and long-term goals.
What Is a Fixed Interest Rate?
A fixed interest rate remains constant throughout the loan tenure.
Pros: Predictable EMIs, stability in budgeting, protection from rate hikes.
Cons: Typically higher initial rates, no benefit from market rate drops.
Best For: Borrowers who prefer stability and fixed monthly payments.
What Is a Floating Interest Rate?
A floating (variable) interest rate changes based on market fluctuations and the lender’s benchmark rate.
Pros: Lower initial rates, benefit from rate cuts, potential savings.
Cons: EMIs can rise if rates increase, harder to budget long-term.
Best For: Borrowers comfortable with risk and looking to take advantage of possible rate reductions.
Key Factors to Consider Before Choosing
Loan Tenure: Longer tenures may benefit from floating rates.
Market Outlook: Rising interest rate trends favor fixed rates.
Risk Tolerance: Stability vs. potential savings.
Financial Planning: Predictable expenses vs. flexible returns.
Fixed vs. Floating Rate — Side-by-Side Comparison
| Feature | Fixed Rate | Floating Rate |
|---|---|---|
| EMI Stability | Constant throughout tenure | Changes with market rates |
| Initial Rate | Usually higher | Usually lower |
| Benefit from Rate Cuts | No | Yes |
| Protection from Hikes | Yes | No |
How Vizzve Finance Helps You Decide
With Vizzve Finance, you can:
Compare fixed vs. floating rates from multiple lenders instantly.
Get expert advice tailored to your financial situation.
Use our EMI calculators to forecast repayment scenarios.
Lock in competitive rates with trusted partners.
FAQs
Q1: Which is better — fixed or floating rate?
A: It depends on your financial stability, market conditions, and risk tolerance. Vizzve Finance can help assess your situation.
Q2: Can I switch from floating to fixed rates later?
A: Yes, but it may involve conversion fees.
Q3: Do floating rates always start lower?
A: Generally, yes — but they can rise over time.
Q4: How does Vizzve Finance help borrowers?
A: We provide transparent rate comparisons, expert advice, and easy application processes.
Published on : 10th August
Published by : SMITA
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