Kotak Mahindra cuts home loan rates to 6.50%

In a move that would further intensify the price cut war in the housing finance segment, private lender Kotak Mahindra has decided to cut home loan interest rates to 6.50% from 6.65% an annum, bringing it to an all-time low. The 15-basis point reduction in Kotak Mahindra home loan rates came into effect on September 10, 2021, and would end on November 8, 2021, post the Diwali festivities.

Aimed at cashing in on the ongoing festive season, the move by Kotak might also prompt similar action by its peers such as SBI and HDFC, two of the biggest home loan providers in India.

“As families get ready to welcome Ganesha into their homes, we are delighted to make it even easier to buy the home of one’s dream. Home Loans now at 6.50%. Wish everyone a happy festive season,” Uday Kotak, Chief Executive Officer (CEO), Kotak Mahindra Bank, said in a tweet.

In a statement issued on September 9, 2021, Mumbai headquartered Kotak Mahindra said the new interest rate would be applicable on fresh home loans as well as balance transfers and would be available for both the salaried and self-employed customer segments. Available across all loan amounts, the new rate will be linked to the borrower’s credit profile.

We are delighted to add to the festive cheer for millions of home buyers and help make their dream of owning their ideal home a reality. 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% home loan interest rate now makes owning one’s dream home even more affordable,” Ambuj Chandna, president for consumer assets, Kotak Mahindra Bank, told the media in a virtual call.

Chandna attributed the spike in demand for home loans to the pandemic, “which has caused both work and education to shift to the homes, and also a downward trend in home prices”.

In October 2020, the lowest home loan interest rate at Kotak Mahindra stood at 6.90%, and has been slashed thrice to bring to the current level of 6.50%—a move that has helped the private lender acquire more customers than usual in the past one year and is likely to provide it an edge over its peers.

Ease of doing business in another aspect that has been helping the bank to improve its home loan book. Through Kotak Digi Home Loans, applicants are offered instant in-principle approval for home loans.

Customers can also apply for Kotak home loans by Kotak mobile banking app or Kotak net banking or visit Kotak branches—the bank has its branches in over 100 cities of India.

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Source: housing.com