What is the difference between fixed and floating home loans

The initial rate on a fixed rate home loans is at least 2% more than that of a floating rate home loan

When market rates decrease the rates of floating rate home loans go down passing on the benefit to the customer, however people with fixed rate home loans are not benefited. On the other hand when market rates increase the rates of both floating rate home loans and fixed rate home loans increase (This is because fixed rate loans have a clause which permits banks to increase the rate at their discretion after a few years).

The interest rate you are charged on a floating home loan is specified as a deviation on a index rate, which will change due to changes in macro-economic factors such as decisions by the Reserve Bank of India. If the index rate increases, then your home loan interest rate will increase causing the tenure of your loan to be increased because banks try to keep your EMIs constant. Similarly if the index rate decreases, then your will decrease causing the tenure of your loan to be decreased. Essentially in a floating rate home loan, the bank passes on the risk of macro-economic factors to the borrower. Over 90% of the home loans in India were floating rate home loans, until the launch of hybrid loans which are discussed below.
Fixed rate home loans offered by banks in India are not guaranteed to be fixed for the entire tenure of the loan.