What is a fixed rate of interest?

A fixed rate of interest means that the rate charged for the loan remains the same over the entire duration of the loan.

The interest rate does not vary which brings an element of stability to the loan.

The individual borrowing the money also knows the rate of interest being charged right from the start of the loan.

The fixed rate only changes when there is an abnormal situation or emergency.
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This makes planning for such loans and their repayment easier for the borrower.

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