Housing loan is encouraged by the government of India by providing income tax concessions. There are various rules govening the housing loan concessions and the house rent income and calculations. Various banks both nationalised and private offer housing loans to individuals. The interest rates are regulated and directed by the Reserve bank on India. The banks can offer lesser than prescribed rates of interest to benefit the people and to compete with other banks. So various banks have come up with a variety of housing loan schemes to attract customers.
There are two basic kinds of interest rates, which are "floating rates" and "fixed rates". The floating rate of interest can keep changing with every revision of interest rates at every quarter. The fixed rates remain same for a fixed period around 5 years or so, unless until the economic conditions have greatly changed(Read the fine print of terms and conditions for the fixed rate).
With the risk of openess to volatility in interest rates the floating rates are less than the fixed rates.
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