Musicvj:
As per my understanding:
Fixed Rate: A fixed rate of interest based on the principal amount your are borrowing. This rate will stay fixed during the entire tenure period of the loan. Thus the EMI will stay fixed.
FLoating Rate: A rate of interest that changes with the vagaries of the economic conditions that surround us.
If you're a gambler, go in for the floating rate. If you are totally risk averse, go for the fixed rate.
The concept you are talking about above is totally different and has nothing to do with fixed or floating interest rates.
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