Kotak Bank launches hybrid home loan; interest rate and EMI to remain fixed for up to 65 months..
Kotak Mahindra Bank has introduced a hybrid home loan designed to offer customers greater certainty regarding their monthly home loan installments (EMIs). Under this scheme, customers can lock in their home loan interest rate for up to 65 months. In a statement issued on Sunday, the bank noted that buying a home marks just the beginning of a family's financial journey. During the initial years, families must manage EMIs alongside expenses such as home furnishing, children's education, savings, and other daily costs.
According to the statement, customers can choose a fixed interest rate tenure of 39, 52, or 65 months under this plan. During this period, the loan's interest rate and EMI will remain unchanged, even if the Reserve Bank of India (RBI) alters the repo rate.
**Home Loan at 7.6% Interest Rate**
The bank is currently offering home loans at a starting interest rate of 7.6 percent. Once the fixed tenure concludes, the loan will automatically transition to a floating interest rate regime, linked to the repo rate and the additional margin (spread) determined at the time of loan sanction. According to the bank, for a home loan of ₹1 crore, a borrower could save up to ₹3.46 lakh if interest rates were to rise to recent peak levels.
**How Will Interest Rates Affect the Household Budget?**
The statement mentions that this product is available for both home loans and loans against property. It is priced on par with the bank's floating-rate home loans, and no additional premium is charged for opting for the hybrid structure. Speaking about the product, Nakul Saxena, Head (Mortgages) at Kotak Mahindra Bank, said, "A home loan can span several decades and go through multiple interest-rate cycles. For many borrowers, every time the interest rate is reviewed, the question arises as to how the next change will impact their EMI or household budget."
Facility to lock interest rates for up to 65 months
Families also need to balance essential living expenses, as income, priorities, and financial responsibilities shift over time. It was further stated that by offering customers the facility to lock their interest rates for up to 65 months, the Kotak Hybrid Home Loan provides a solid foundation for financial planning during the initial years of home ownership.
Kotak Mahindra Bank’s mortgage portfolio grew by 15 percent to ₹1,50,903 crore as of June 30, 2026, up from ₹1,31,792 crore at the end of the first quarter of the previous fiscal year. The statement added that the hybrid home loan is available to eligible salaried and self-employed borrowers across India.
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