Kotak Mahindra Bank introduces a hybrid home loan that allows borrowers to lock their interest rate and EMI for up to 65 months, providing greater financial certainty in fluctuating interest-rate cycles.
Kotak Mahindra Bank has introduced a hybrid home loan that lets borrowers keep their interest rate and EMI unchanged for up to 65 months, a move aimed at giving new homeowners more certainty during the early years of repayment. According to the bank, the product is available to eligible salaried and self-employed customers across India and is priced in line with its floating-rate home loans, without an extra premium for choosing the hybrid option.
The new loan gives customers the choice of a fixed-rate window of 39, 52 or 65 months. During that period, the EMI does not change even if the repo rate moves. After the chosen term ends, the loan switches automatically to a floating structure tied to the repo rate plus a spread set at sanction.
Kotak said the product is designed for households that are often juggling furniture purchases, school fees, savings and other expenses alongside their mortgage payments. In an example shared by the bank, a borrower taking a ₹1 crore loan could save as much as ₹3.46 lakh if interest rates climb towards recent highs. The bank is currently offering housing loans from 7.6%, while its own website lists home loan rates starting at 7.99% a year.
Nakul Saxena, head of mortgages at Kotak Mahindra Bank, said home loans often run through several interest-rate cycles and can place pressure on family budgets whenever rates are reviewed. He said the hybrid structure offers borrowers a larger planning cushion in the opening years of ownership. Kotak also said its mortgage book rose 15% to ₹1,50,903 crore as of June 30, 2026, from ₹1,31,792 crore at the end of the first quarter of the previous financial year.
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