Fixed-rate loan means that during the loan period, no matter how the bank interest rate changes, the borrower pays interest according to the fixed interest rate signed in the contract, and the repayment amount will not change because of the change of interest rate.

The advantage of fixed-rate loans is that they can avoid the risk of rising interest rates. However, when the interest rate is stable or falling, the lender will be locked in a higher interest rate level and pay more interest for nothing. So there is no absolute difference between floating interest rate and fixed interest rate.

Under the background that the market generally expects to raise interest rates and the interest rate risk suddenly increases, fixed interest rate loans have become a good tool to avoid risks, but for borrowers, it is necessary to make a correct judgment on the macro economy, especially the interest rate trend. Because, once a fixed interest rate loan contract is signed, if you want to modify the contract or repay the loan in advance, you must pay a certain amount of liquidated damages to the bank.