New Delhi, Feb. 27 -- It is not easy to choose between a fixed and floating interest rate for your home loan in India, given the pros and cons of both. Below is a detailed guide that will help you make a decision on what type of interest rate will be most suitable for you as per your needs, goals and financial situation.

Fixed as the name suggests are rates that don't change at all throughout the loan period such that the borrowers get fixed Equated Monthly Instalment (EMIs) every month. It's suitable for long term planning as you know with certainty what would be the monthly amount you'll be paying.

But fixed rates will be 1% to 2.5% more than floating rates to compensate the lender for loan duration risk. Further, if the market rate d...