There are two models of interest rate in the market. One is fixed interest rate concept where the rate of interest and EMI remains same for the complete tenure of the loan or till the time loan account is closed whichever is earlier. The second and most common type of concept is floating interest rate home loan. In such home loans, the interest rate and tenure of EMI is dependent on the base rate of the lender. As the base rate changes the home loan interest rate and tenure also changes. Fixed rate home loan are beneficial when the interest rates are expected to rise in the near future and floating rate home loans are beneficial when interest rates are expected to fall in near future.