Should I opt for a floating rate or fixed rate for my home loan in 2024?

Asked 19 Apr 2026·4512 views

I am planning to take a home loan of ₹50 lakhs for 20 years. The bank is offering floating rate at 8.65% and fixed rate at 9.15%. The difference is 0.50% which translates to about ₹1,800 extra EMI per month for the fixed option. I have read that floating rates have historically been better for borrowers over the long term. What would you suggest for someone who plans to stay in the property for at least 10 years?

Asked by Anita Desai

3 Answers

✓ Accepted Answer

Go with floating rate. In India, floating rates have almost always been cheaper than fixed rates over a 10+ year horizon. RBI's benchmark rates have been on a downward trend historically, and even when they rise, the increase is gradual and capped. In 2024 with rate cycle peaking, you can expect rates to soften. Your savings of ₹1,800/month compound significantly over 20 years.

Answered by FinWiz24 Admin · 20 Apr 2026

Consider a hybrid approach: take a part of the loan (say ₹25 lakhs) on fixed rate for 3-5 years to get certainty, and the remaining on floating. This gives you protection if rates rise sharply in the initial years while keeping the long-term benefit of floating rates.

Answered by Vikram Mehta · 29d ago

If you have a stable job and expect your income to grow, consider making part-prepayments whenever possible. Even an extra EMI per year on a floating rate loan saves you lakhs in the long run.

Answered by Vikram Mehta · 20 Apr 2026