| Stability |
EMI remains constant throughout |
EMI varies with market rates |
| Initial Interest Rate |
Usually higher than floating rates |
Generally lower initially |
| Risk Factor |
Low-risk, suitable for conservative borrowers |
Higher risk due to interest rate fluctuations |
| Prepayment Charges |
May include penalties |
Often comes with lower or no prepayment penalty |
| Loan Tenure Impact |
Tenure remains fixed unless refinanced |
Tenure may increase or decrease with rate shift |
| Transparency |
Clear and predictable |
Requires understanding of benchmark rate trends |
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