Fixed Interest Rate Loans
As the name suggests, the interest rate in these loans remains constant throughout the tenure of the loan. These loans are normally priced higher than variable rate loans for a similar tenure.
As a variation, some banks offer a resettable fixed rate loan under which the rate remians fixed for a particular period (say three years) and is then reset every three years. The interest rate on such resettable fixed rate loan is normally lower than extended tenure fixed rate loans.
posted by Ranjana @ 9:48 PM
7 Comments:
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