Equity Home Loans

Why for home loans the banks are calculating the interest rate?

I Check with the bank for the home loans,they told me 7.5% as floating & 7.25% as fixed,I need to know what is the difference between these two terms? If i take RS.10,00,000 as home loan & the loan period will be 5 years,so with the interest rate 7.5%,what will be the EMI Per month need to pay to bank. Please explain. Thanks, Ibrahim

Public Comments

1. Fixed means the rate stays the same throughout the term of 5 years Floating means it will change with the market. Could be 7 one year and 10 the next. Take the fixed.
2. Fixed means it will be remain fixed for the years which you decided and floating means it varies according to current market and as per as EMI is concern, we are unable to calculate as it requires some statement which you can get it from Bank