Kotak Mahindra Bank cuts home loan interest rate to 6.5%
- In the past, Kotak Mahindra's rivals—HDFC and State Bank of India (SBI)—have responded to rate cuts by cutting their own offering.
Kotak Mahindra Bank has cut its home loan interest rates by 0.15 per cent to 6.5 per cent. Kotak Mahindra has started the festive season by announcing the reduction in home loan interest rate yet again by a further 15 basis points (bps) from 6.65 per cent to 6.50 per cent per annum, it said in a release on Thursday.
This special rate of 6.50 per cent is a limited period festive season offer beginning on Friday and ending on November 8, 2021, said the bank. With this, Kotak Mahindra bank continues to offer one of the most competitive rates in the home loan industry, it added. Kotak said that the offering is for both fresh home loans and balance transfers, which is available across all loan amounts and is linked to a borrower's credit profile. The loan, which is applicable for both the salaried and self-employed customer segments, has an instant in-principle sanction process with Kotak Digi Home Loans.
Ambuj Chandna, president of consumer assets, said this is the lowest interest rate in more than a decade and one of the most competitive among rivals, its president for consumer assets. “As the world has changed and we are spending more time at home, our lifestyles have also evolved. People are looking for comfortable residences where the entire family can work, entertain and spend quality time together. Kotak's incredible 6.50 per cent home loan interest rate now makes owning one's dream home even more affordable,” Chandna was quoted as saying by news agency PTI.
Chandna said that the demand for home loans is coming because of a greater interest in home buying triggered by the pandemic, which has caused both work and education to shift to the homes, and also a downward trend in home prices. Chandna added that the aggressively priced home loans will be available for both fresh home loans and also to balance transfers.
In the past, Kotak Mahindra's rivals—HDFC and State Bank of India (SBI)—have responded to rate cuts by cutting their own offering. Kotak's lowest rate offering stood at 6.9 per cent last October and has been cut twice since then to the current rate of 6.65 per cent.