A common question I recently came across: is personal loan fixed or variable? It can be either fixed or variable. Personal loans can typically be offered with fixed interest rates or variable (floating) interest rates, and recent regulatory changes now require lenders to give borrowers the option between the two.
Is a Personal Loan Variable or Fixed Rate?
A fixed-rate personal loan means that your interest rate is set at the start, and it remains unchanged for the entire tenure of the loan. Your EMI (Equated Monthly Installment) stays constant month after month, no matter how market interest rates move.
This stability helps with budgeting and gives you certainty about your payment obligations. However, fixed-rate loans often come with a slightly higher interest premium, because lenders build in a buffer for potential rate hikes.
On the other hand, a variable (floating) rate personal loan has an interest rate linked to a benchmark (such as the bank’s base rate, MCLR, or repo-linked rate).
So as benchmark rates change (if the RBI changes repo rate or banks adjust their lending rates), your interest rate and thus your EMI will move up or down. That means when rates fall, you may benefit from lower payments; but if rates rise, your costs also go up. I hope you found this information useful.
Choose NB InstaCash to Get Instant Disbursal of Personal Loan of Up to 10 Lakhs in Your Account!Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
Is Personal Loan Fixed or Variable?
ali
43 Views
1
2 months
2025-09-30T09:36:59+00:00 2025-09-30T09:37:02+00:00Comment
Share