Do fixed and floating interest rates differ in how my education loan EMI changes over time?
25 Oct 2026 · Answered by Yasika Choudhary · 1 min read
The difference comes down to whether your rate can move. A fixed rate keeps your EMI steady, while a floating rate can go up or down over time.
Fixed vs Floating Rate
| Point | Fixed rate | Floating rate |
|---|---|---|
| EMI over the tenure | Remains the same | Can change |
| What drives it | Set when the loan starts | Market conditions and the repo rate announced by the Reserve Bank of India |
| Risk and benefit | Predictable payments | Could decrease or increase, so it can be beneficial or risky |
Why the Rate Matters
The interest rate is what the bank or NBFC charges you each year on the loan. A lower rate usually means lower EMIs and a smaller total repayment. An education loan EMI calculator lets you change the rate and see the difference in your overall payment.
My Advice
Run your numbers in an EMI calculator at both a lower and a higher rate before you choose. Ask the lender how and when a floating rate can change, and read the loan terms on the lender's official page.
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