Can I switch from floating to fixed interest rates for second-hand car loan?

You can move from a floating rate to a fixed rate on a second-hand car loan, but it depends on the lender’s rules. Some offer it freely, some charge for it, and a few do not have the provision for it at all. Many borrowers think about this switch when they start getting EMI reminders after a rate change.

The first step is simple: call your branch or the loan desk and ask if they allow a conversion. They’ll usually tell you the fee and the new fixed rate. Most times, the fixed rate sits a little higher because the lender is locking in the risk.

Before agreeing, check your remaining tenure. If you’re close to finishing the loan, paying a conversion charge may not make sense. For a longer tenure, the stability might feel worth it.

If the new rate feels unclear, ask for a small breakup sheet. Before making a decision, compare rates by researching or using online calculators to see the total cost of your current loan vs the fixed-rate alternative. This helps you determine if that switch is necessary.