Saturday, April 13, 2013

The lending rate dilemma

....The RBI is mulling over the recommendation made by its nominated committee that the first 7-10 years of a home loan tenure carry a fixed interest rate which later may be reset to the floating rates or the then prevailing rates. This recommendation seems worth considering. Floating rates are quite confusing for the common home loan borrower who invariably pays a higher EMI when the rates increase but does not benefit when the rates subside......

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