Kotak Mahindra Bank launches hybrid home loan with fixed EMI options

Kotak Mahindra Bank has launched a new Hybrid Home Loan product designed to provide borrowers with stability regarding their Monthly Installments (EMI). The scheme allows customers to lock in their interest rate for a fixed period of either 39, 52, or 65 months.

During the chosen fixed-rate period, the interest rate and EMI remain unchanged regardless of any fluctuations in the Reserve Bank of India's repo rate. Once the selected period concludes, the loan automatically transitions into a floating-rate arrangement linked to the prevailing repo rate plus a predefined spread.

The product is available for both standard home loans and Loans Against Property (LAP). The bank stated that the pricing is comparable to its standard floating-rate loans, with no additional premium required to opt for the hybrid structure. Nakul Saxena, Head of Mortgages at Kotak Mahindra Bank, noted that the product aims to create a "meaningful planning cushion" for homeowners during the early years of property ownership.