What is a Floating Interest Rate?

A floating interest rate changes according to financial market trends. The base rate determined by the Reserve Bank of India depends on several different factors and every time it changes, the interest rates are also revised accordingly. If the market conditions are favourable and the average interest rate on educational loans decreases, you can save a significant amount of money with this option.

Choosing between a fixed and floating interest rate at the time of obtaining a loan for education abroad is a significant decision and requires careful consideration. Both have their set of advantages, and the right choice entirely depends on market conditions as well as your financial circumstances. It is recommended to take the education loan from a reputed lender, so you do not face financial fraud. You can also use an online educational loan calculator to make a more informed choice.