Choose a fixed interest rate if you want a constant EMI for the entire tenure and plan to prepay early on an NBFC loan. Choose a floating interest rate if you are borrowing for 4+ years and want the benefit of zero prepayment penalty under RBI’s 2025 lending rules. As of September 2026, most banks price their floating option 0.5% to 1.5% lower than a fixed rate personal loan, but that rate can rise or fall at every reset cycle. <\/p>\n\n\n\n
When you apply for a personal loan<\/a>, the choice between a fixed interest rate and a floating interest rate decides your EMI stability, your total interest outgo, and your right to prepay without penalty. This guide breaks down the fixed vs floating interest rate decision with real 2026 rate data, EMI tables, and RBI rules, so you can pick the structure that fits your income and repayment plan.<\/p>\n\n\n\n Ruloans<\/a> is a financial distribution company that works with 275+ partner banks and NBFCs across 4,000+ Indian cities. Ruloans does not lend its own money; every personal loan<\/a> is sanctioned and disbursed by the matched partner bank or NBFC based on their own credit policy.<\/p>\n\n\n\n A fixed interest rate on a personal loan<\/a> is an interest rate that is locked in at the time of loan approval and does not change for the entire repayment tenure, regardless of what happens to the RBI repo rate or the broader market.<\/p>\n\n\n\n Under a fixed interest rate, your EMI amount is calculated once, at the start of the loan, and it stays constant every month until the loan is fully repaid. This is why a fixed rate personal loan is the most common structure for personal loans in India today, since most borrowers want certainty over a 1 to 5 year repayment window rather than a rate that can move with the market.<\/p>\n\n\n\n Key traits of a fixed interest rate on a personal loan:<\/p>\n\n\n\n <\/p>\n <\/p>\n No hidden charges \u2022 Trusted by 1M+ borrowers across 4,000+ cities<\/p>\n *Interest rate subject to eligibility & credit profile. T&C apply.<\/p>\n <\/div>\n<\/div>\nWhat Is a Fixed Interest Rate on a Personal Loan?<\/strong><\/h2>\n\n\n\n
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