Can any one explain me , difference between fixed installment or reduced installments in personal loans.?

Question by Veera: Can any one explain me , difference between fixed installment or reduced installments in personal loans.?
Can any one explain me , difference between fixed installment or reduced installments in personal loans.

plz also tell me which bank is giving at modarate interest rate for personal loans for software engineers(bangalore).

Best answer:

Answer by mardix27
In simple layman’s terms:
Fixed installments are rates that are the same throughout the length of the loan. Therefore, your monthly payments would be the same throughout the life of the loan (unless you default or something).

Reduced installments may be temporary and/or varied. Your monthly payments may be lower than normal, but your payments may not be the same and may vary month by month. There is also a chance that as with those rates seen in ARM mortgages, your rates may almost skyrocket in some months.

As for as banks & loan rates, I am not too sure at which bank has the best rates. I personally belong to a Credit Union. Credit Unions gives good rates to its members. Check out www.http://www.lovemycreditunion.org to find a credit union that you could join.

Good luck

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