Kotak Mahindra Bank on Monday launched a Hybrid Home Loan that allows eligible borrowers to lock their home loan interest rate and EMI for 39, 52 or 65 months, offering protection against Repo Rate-linked increases during the selected fixed-rate period.
The product is designed to give homebuyers greater visibility over household finances during the initial years of home ownership, when families may also be managing expenses related to interiors, education, savings and other commitments. After the fixed period, the loan will automatically shift to a floating-rate structure linked to the Repo Rate plus a predefined spread disclosed at the time of sanction.
According to the bank, the hybrid product is available at a price comparable to its floating-rate home loans, with no separate premium. It is offered across India to eligible salaried and self-employed borrowers and is also available as a Loan Against Property.
For homebuyers in Kolkata, where borrowers often weigh long-term affordability against changing interest rates, the fixed-rate window could offer greater certainty in monthly budgeting. The option may particularly appeal to buyers seeking predictable EMIs during the early years of a long-tenure housing loan.
Kotak said an illustrative ₹1 croreloan could potentially save about ₹3.46 lakh over 65 months under an assumed 125-basis-point Repo Rate increase, though actual savings will vary.