Q: Car Loan - Fixed vs Floating Interest Rate in this diwali 2024 season?

[pulkit.gupta4444]

I recently saw a YouTube video of bekifaayati, suggesting that car loans should be taken on a floating interest rate rather than fixed. I'm considering a car loan, and I wanted to get some advice on this:

What are the risks of taking a floating rate for a car loan compared to a fixed rate? Should I really consider floating, especially given today's rates?

If a bank is offering the lowest rate, how can I proceed online? Can the process be completed entirely online, or will I need to visit each bank personally to get the interest rate based on my CIBIL score?

Will multiple CIBIL score checks (from different banks) negatively impact my CIBIL score next month?

Looking forward to your inputs!

 

[RITIK Jain]

You must obtain the floating interest option. Because currently the Repo Rate is very high and in future, there are more chances of drop it then your car loan interest rates will also fall with Repo Rate. As we have seen 50 basis point fall in US Fed rates so there is high chances now that we can see the drop in Repo Rate soon.