10. What is floating and fix rate housing loan?

Floating Rate – A loan where the interest rate is not fixed is referred to either as a floating interest rate loan, variable interest rate loan or adjustable rate loan, It is linked to a specific index or margin eg. Above/below Medium Term Prime Lending rate (MTPLR)
 
Fixed Rate – It is a loan where the interest rate is fixed during the life / certain tenure of the loan.

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