Kochi: Kotak Mahindra Bank has introduced a new ‘Hybrid Home Loan’ aimed at providing financial security to home loan customers. The product is designed to help borrowers maintain financial stability during the initial years of their home loan and avoid an increase in monthly repayments due to fluctuations in interest rates.
Customers can choose a fixed interest rate period of 39, 52 or 65 months. During this period, even if the repo rate increases, there will be no change in the loan’s interest rate or monthly repayment. After the fixed-rate period ends, the loan will automatically switch to a floating interest rate linked to the prevailing repo rate.
The facility is available both as a home loan and as a loan against property. Salaried as well as self-employed individuals are eligible to apply. The bank stated that loans will be sanctioned to eligible customers subject to its credit and risk assessment policies.
