Finance glossary

What is Floating interest rate?

A loan interest rate that changes over the loan's life in line with a benchmark such as the RBI repo rate.

Most home loans in India are floating-rate. When the benchmark falls, your rate falls too, and the reverse when it rises. Lenders usually adjust the tenure first when rates change; you can ask them to adjust the EMI instead.

Try the calculator

EMI Calculator

← All finance terms A–Z

In the news