How this fixed vs floating works
The fixed schedule uses one rate. Floating scenarios reset after the chosen year. Choose whether the model recalculates EMI over the remaining term or retains EMI and adjusts payoff time; total interest is summed from monthly balances.
Worked example
A ₹50 lakh, 20-year loan compares 9% fixed with 8.5% floating, then stresses floating rates by ±1.5 percentage points after year three.
Try it yourself: the form above starts with these illustrative values. Change any input to see the result and chart update instantly.
Assumptions used
- The displayed scenario paths are hypothetical.
- Floating EMI adjusts at reset while original maturity remains.
- No conversion or reset fees are included.
What this estimate does not cover
- This is a scenario tool, not a rate forecast.
- Real benchmark changes can occur at different times and magnitudes.
Financial contracts can use day-count, rounding, reset and fee conventions that differ from this educational model. Use your lender’s official schedule for a contractual figure.
Frequently asked questions
Does floating always cost less initially?
Not necessarily; pricing and future resets depend on the lender, benchmark and loan terms.
Can tenure change instead of EMI?
Yes. Select “Keep EMI, adjust tenure” to model that response. A sufficiently large increase can also create a negative-amortisation warning.
Official references
Regulatory statements are deliberately limited and linked to primary sources. These sources were last reviewed on 3 November 2026.
- RBI: Levy of foreclosure charges / pre-payment penalty on floating-rate term loans — Banks; floating-rate term loans sanctioned to individual borrowers. Always confirm current applicability to the specific loan.
- RBI FAQ: Reset of floating interest rates on EMI-based personal loans — Communication and options around interest-rate resets; home loans fall within the RBI definition of personal loans for this framework.
- RBI consumer guidance on home loans — General borrower education on APR, fees, margin/down payment and lender comparisons. Some examples may be historical; verify lender terms.