Kotak Mahindra Bank Hybrid Home Loan Locks Rate for 65 Months

Kotak Mahindra Bank launched a hybrid home loan product that lets customers lock in their interest rate for up to 65 months, the bank said Sunday. The loan, starting at 7.6%, is designed to give borrowers EMI certainty during the early years of home ownership.

Customers can choose a fixed-rate period of 39 or 52 months, with an option to extend to 65 months. During that period, the interest rate and EMI remain unchanged even if the RBI's repo rate changes. After the selected period, the loan automatically converts to a floating-rate structure linked to the repo rate plus a spread disclosed at sanction.

"Buying a home is only the beginning of a customer's financial journey," the bank said in a statement. "Families often manage interiors, education, savings and everyday expenses alongside the monthly EMI."

"A home loan can span decades and move through several interest-rate cycles," Nakul Saxena, head of mortgages at Kotak Mahindra Bank, said in a statement. "For many borrowers, every rate review raises the question of how the next change may affect their EMI or household budget."