Kotak Mahindra Bank introduces a hybrid home loan product allowing borrowers to fix their interest rate for up to 65 months, providing greater EMIs certainty amid fluctuating rates.
Kotak Mahindra Bank has introduced a hybrid home loan that lets borrowers keep their rate unchanged for 39, 52 or 65 months, a move aimed at giving households more certainty over EMIs in the early years of ownership. According to the bank, the product is designed for buyers who must juggle home loan payments alongside furnishing, children’s education, savings and other day-to-day costs.
During the chosen fixed-rate period, the interest rate and monthly instalment stay the same even if the repo rate moves. After that, the loan shifts on to a floating-rate structure linked to the repo rate plus a spread disclosed at sanction. The bank said the offer is priced in line with its floating-rate home loans, with no extra premium for the hybrid structure, and that housing loans currently start at 7.6%.
Kotak said the product is available for both home loans and loans against property. In its announcement, the bank cited an example in which a borrower taking a ₹1 crore loan could save as much as ₹3.46 lakh if rates climb towards recent peaks. The lender also says it offers home loans of up to 90% of a property’s value, tenures of up to 25 years and tools such as an EMI calculator to help customers assess repayment options.
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