Mika
VIP Contributor
When you get a loan, you are subject to paying interest on your loan. There are different kinds of interest rates but the most common ones are fixed interest and variable interest. When taking a loan, understand the interest rate options provided by the central bank in your country and the financial institution where you are applying for loan. Some banks offer flexibility in switching between fixed and variable interest rates, while others may have restrictions. Prior to obtaining a loan, ensure clarity on the available interest rate options with the lending institution. Also make sure, they do not hike interest rates frequently.
