Equated Monthly Installment (“EMI”) is the amount comprising a portion of the interest and the principal loan amount which is payable by a borrower to the lender every month.
Interest rates vary from time to time and from institution to institution. The current trend ranges from about 9% to 11% pa.(Septemeber 2010) The interest calculated either on a daily or monthly reducing or yearly reducing balance.
A fixed-rate housing loan is a loan where the rate of interest is constant through the entire term of the loan period.
A floating interest rate loan is a loan where the interest rate payable is linked to the market conditions such as the bank retail prime lending rate and rises and falls with the bank rate varies. Hence a borrower bears the risk of interest rate fluctuations. Floating interest rates offered are usually lower than the […]