Well, on one hand, the low floating rates are enticing, on t
he other hand, with inflation concern still being held high, the interest rates are likely to go up further. So, what should a customer do is a million dollar question. Amit Saxena, CEO, Planman Financial, like many other experts, chimes for the fixed tune, commenting, “A borrower should immediately lock into a fixed loan, as RBI’s priority is controlling inflation, which it would ensure with further rate hikes, directly or indirectly.” In case of future interest rate falls, Saxena recommends prepaying one’s loan and moving to floating rates immediately, as many banks allow such prepayment facilities without much fines. All that clearly sounds like sweet music. But the question is, will borrowers bite the bullet? Er...no comments :-)
For Complete IIPM Article, Click on IIPM Article
he other hand, with inflation concern still being held high, the interest rates are likely to go up further. So, what should a customer do is a million dollar question. Amit Saxena, CEO, Planman Financial, like many other experts, chimes for the fixed tune, commenting, “A borrower should immediately lock into a fixed loan, as RBI’s priority is controlling inflation, which it would ensure with further rate hikes, directly or indirectly.” In case of future interest rate falls, Saxena recommends prepaying one’s loan and moving to floating rates immediately, as many banks allow such prepayment facilities without much fines. All that clearly sounds like sweet music. But the question is, will borrowers bite the bullet? Er...no comments :-)For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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