Most of these articles are published post-effect, that is, when someone has exercised an option, when a change has come, in this case way back since Jan. In the first place why [name changed] took a floating option as late as Jan when rates were bound to hike? An important piece of advice would be to suggest that it is indeed beneficial to take a floating rate loan now, at least for mid term considering what holds in the future, while a fixed rate was beneficial about two years back till early this calender year, every other advisor was suggesting a floating option which led to EMI problems many salaried people have landed in. In fact, as things stand today, a fixed or a floating option for a three year loan would cost almost same at about 10.5-11 percent interest rate. Since in coming 1-2 years the rates may go upto 12-13 percent, it will still be better to avail a floating option as a very high hike will adversely effect the economy and if markets slow down, the rates might as well get controlled. Either ways, that will be a safer option.
