Now Reading: Kotak Bank hybrid home loan locks rate for up to 65 months
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Kotak Bank hybrid home loan locks rate for up to 65 months
Kotak Mahindra Bank has launched a hybrid home loan that lets customers lock their interest rate for up to 65 months. The fixed-rate period can be 39, 52 or 65 months, after…
The Story in Brief
Kotak Mahindra Bank has launched a hybrid home loan that lets customers lock their interest rate for up to 65 months. The fixed-rate period can be 39, 52 or 65 months, after which the loan automatically switches to a floating rate linked to the repo rate plus a spread.
The bank says the product gives families certainty on EMIs during early years when budgets are tight. On a Rs 1 crore loan, a borrower could save up to Rs 3.46 lakh if rates rise to recent highs. The loan is priced comparably to the bank's floating-rate home loans with no extra premium.
The Indian Opinion
This hybrid loan offers a middle path between fixed and floating rates. Critics may call it a marketing twist, but the certainty of EMIs for over five years is real value for young families. The real test will be whether borrowers choose this over a traditional fixed loan when rates are falling. If the bank's mortgage book growth continues, the product will prove its worth.
Source: deccanherald.com
This story was synthesised by AI from the source linked above.
