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Kotak Mahindra Bank has launched a hybrid home loan that allows borrowers to lock their interest rate and EMI for up to 65 months, offering greater certainty during the initial years of home ownership. Customers can choose fixed-rate periods of 39, 52 or 65 months, after which the loan automatically shifts to a floating-rate structure linked to the Repo Rate plus a predefined spread. The bank is currently offering home loans starting at 7.6 per cent. The product is available for home loans and loans against property across India to eligible salaried and self-employed borrowers.
Kotak Mahindra Bank has launched a hybrid home loan that allows customers to lock their home loan interest rate for up to 65 months, giving borrowers greater certainty over their EMIs during the initial years of home ownership.
The bank said buying a home is followed by several financial commitments, including interiors, education, savings and regular household expenses, which families have to manage alongside their monthly EMI.
Under the new product, customers can select a fixed-rate period of 39, 52 or 65 months. During the chosen period, both the interest rate and EMI remain unchanged, irrespective of changes in the repo rate.
Kotak Mahindra Bank is currently offering housing loans starting at 7.6 per cent. After the selected fixed-rate period ends, the loan automatically shifts to a floating-rate structure linked to the Repo Rate plus a predefined spread disclosed at the time of sanction.
According to the bank, on a INR 1 crore home loan, a borrower could save up to INR 3.46 lakh if interest rates rise towards recent highs. The hybrid structure is available for home loans and loans against property at pricing comparable to the bank's floating-rate home loans. Customers do not have to pay a separate premium for opting for the hybrid structure.
Kotak Mahindra Bank Head of Mortgages Nakul Saxena said the long tenure of home loans means borrowers may experience several interest-rate cycles during the repayment period. He said rate changes can affect EMI planning and household budgets, particularly as families manage changing incomes, priorities and financial commitments.
Saxena added that the option to lock the rate for up to 65 months provides borrowers with a planning cushion during the early years of home ownership.
Kotak Mahindra Bank's mortgage book grew 15 per cent to INR 1,50,903 crore as of June 30, 2026, from INR 1,31,792 crore at the end of the first quarter of the previous financial year. The hybrid home loan is available across India to eligible salaried and self-employed borrowers.
Source PTI
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