Weighted Average Rate of Interest

In case of home loans, where the disbursement takes place as per the stages of construction of a property, the interest rate in the market may change during the tenure. Irrespective of the fact that you may either be under the fixed rate or the variable rate scheme, the new rate of interest would apply to the extent of un-disbursed portion of your loan amount. The final rate of interest that would be applicable to your loan would be an average of the different rates at which your loan has been disbursed.