A fixed rate home loan scheme offers home loans at a fixed rate which will remain fixed for the complete tenure of the loan. The fixed rate home loan scheme is offered by Axis Bank under the name “Nischint”. According to the scheme there will not be any changes in the EMI and the bank offers the loans at 11.75 per cent rate of interest.
The borrowers who are affected by the rising interest rate scenario will be happy with the scheme but they will also take care to consider the pros and cons of the scheme. They have to compare the rates and overall charges from different banks before coming to a conclusion.
It is advisable for the borrowers to do a research on the interest rates offered by other banks and the benefits that they will receive if they take up teaser loans offer low interest rate or EMI in the initial years. The borrowers should check the base rate, premium over base rate, and historic data on past loan schemes before taking the decision.