What’s the difference between a fixed rate and a variable rate personal loan?
A fixed rate personal loan locks in an interest rate and repayment amount. This ensures that your payments won’t change for the life of the loan and you can rely on a regular payment schedule.
With a variable rate loan, your payments may rise or fall at any point during the life of the loan. This means that you may reap the benefit of a lowered interest rate in the form of lower payments, but you’ll also be susceptible to interest rate increases. You can make extra payments at no cost and pay off the loan at any time without penalty.