Sage-Tips

Is fixed or floating interest better?

Fixed rate loans may be priced higher than floating rate loans, if the bank believes rates will rise. It helps banks to earn more as rates increase, through the floating rate option. If the fixed rate is priced lower than the floating rate, the bank is anticipating a fall in interest rates.

Does EMI change with floating rate?

What is floating interest rate? Changes, if any, in the interest rate during the tenor of the loan will not affect the EMI; instead, the tenor of the floating interest loan will vary. On loans with floating interest rates, lenders cannot apply any prepayment penalty per the rules of the RBI.

Can floating interest rate increase?

In a floating rate home loan, the interest rate changes on a quarterly basis as per market interest rates over the tenure of the loan. If interest rates were to fall in the future, Shikha will benefit from a reduction in her repayment tenure. If rates move up instead, her repayment tenure can increase.

Can you change a fixed rate mortgage?

Yes, you can, but you need to understand the implications before you make a decision. It’s possible to remortgage with your existing mortgage provider or switch to a new one. Whichever option you choose, it’s likely that you’ll have to pay fees for exiting your existing mortgage early.

What is the difference between fixed rate and floating rate?

As compared to fixed interest rate, floating rates are comparatively cheaper. Fixed interest rates are 1\%-2.5\% higher than the floating interest rate. The increase and decrease in the floating interest rate is temporary, as it varies as per the market trends.

What is difference between floating and reducing interest rate?

Floating interest rate varies with the market scenario on interest. Therefore, the interest for the next month is calculated only on the outstanding loan amount. Example. If you take a loan of Rs 1, 00,000 with a reducing rate of interest of 10\% p.a. for 5 years, then your EMI amount would reduce with every repayment.

Can I shift from fixed to floting interest rates with LIC HFL?

Yes you can shift from fixed to floting interest rates for your housing loan with LIChfl. You need to contact your loan provider. Is LIC HFL home construction loan good and customer friendly?

Can I change from fixed interest to floating interest in LIC?

You have to see agreement signed .If the mininmum period as fixed interest is over you can change .Or give a reqest lichfl .Interest rates will be coming down further . Yes you can shift from fixed to floting interest rates for your housing loan with LIChfl. You need to contact your loan provider.

Should I go with LIC HFL for a home loan?

Do never go with LIC HFL for housing loan they are the big cheater by initially offering interest rate in par with bank interest rate. after 2 years they will increase interest rate upto 14\% without informing to customer. by this customer loan term will get doubled. Its big a trap to cheat innocent customer by LIC HFL.

Are You being cheated by LIC Housing Finance Ltd (lichfl)?

Many people who have taken loan from LIC Housing Finance Ltd. (LICHFL) are complaining that they are being cheated by LICHFL by charging a high interest rate for the home loan they have taken few years back.