Financial institutions offer Home Loans and Loan Against Property at floating rate of interest. From time to time they also offer fixed rate for Home Loans and Loan Against Property for specific loan tenures.
Floating rate loans are linked normally to financial institutions 3 month Marginal Cost of Fund based Lending Rate (MCLR), which will published regularly on their website. Any change in 3 month Marginal Cost of Fund based Lending Rate (MCLR) will impact the interest rate on your loan. This will have a corresponding impact on your Equated Monthly Instalment (EMI) and/or loan tenure depending on respective financial institutions / bank’s prevailing policy. Please check the home loan related policy carefully for interest rate calculations and EMI calculations