Understanding loan eligibility
What lenders typically look at when you apply, and practical steps to strengthen your application.
When you take a loan, the interest rate may be fixed or floating. The choice affects how predictable your repayments are.
Fixed rates
A fixed rate stays the same for an agreed period, so your EMI is predictable. Some loans are fixed only for an initial period and then become floating.
Floating rates
A floating rate is linked to a benchmark and can move up or down over the life of the loan. When rates change, lenders may adjust your EMI, your tenure or both.
Questions to ask your lender
- Which benchmark is the rate linked to, and how often is it reset?
- If rates rise, will the EMI or the tenure change?
- Are there charges for switching between fixed and floating?
- What are the prepayment terms?
Our calculators assume a fixed rate for the whole tenure, which makes them useful for comparison but not a prediction of future rates.