Fixed vs. Floating Interest Rates: Which is Better for Education Loans in India?
When it comes to pursuing higher education in India, securing the right financing is crucial. As education loan interest rate in India fluctuates in response to the country's changing financial circumstance .One of the most significant decisions you'll have to make in this regard is whether to opt for a fixed or floating interest rate for your education loan. Each option comes with its own set of advantages and disadvantages, and understanding these nuances is essential before making a choice that will impact your financial future. Fixed Interest Rate: Stability Amidst Uncertainty. A fixed interest rate, as the name suggests, remains constant throughout the entire loan period, irrespective of market fluctuations. This characteristic provides borrowers with an essential element – stability. Monthly EMIs (Equated Monthly Instalments) under a fixed rate loan remain consistent, making budgeting and financial planning more straightforward. This predictability can be a boon for ...