Kotak Mahindra Bank launches hybrid home loan

To provide greater certainty on EMIs, Kotak Mahindra Bank has announced the launch of its hybrid home loan, enabling customers to lock their home loan rate for up to 65 months and plan these important early years with greater visibility.

Buying a home is only the beginning of a customer’s financial journey, and in initial days, families often manage interiors, education, savings and everyday expenses, alongside the monthly EMI, Kotak Mahindra Bank said in a statement on Sunday.

The product allows customers to choose a fixed-rate period of 39, 52 or 65 months, during which their interest rate and EMI remain unchanged even if the repo rate changes, it said. Presently, Kotak Mahindra Bank is offering housing loans starting at 7.6 per cent.

This gives them a defined window in which to plan household and life expenses, it said, adding that after the selected period, the loan automatically moves to a floating-rate structure linked to the Repo Rate plus a predefined spread disclosed at sanction.