Kotak Bank Unveils Hybrid Home Loan, Borrowers Can Lock Rates For 65 Months

New Delhi: Kotak Mahindra Bank has launched a hybrid home loan that allows borrowers to lock their interest rate for up to 65 months, offering greater certainty over monthly repayments during the initial years of home ownership.

The product allows customers to select a fixed-rate period of 39, 52 or 65 months. During this period, both the interest rate and equated monthly instalment (EMI) will remain unchanged, irrespective of movements in the Reserve Bank of India’s repo rate.

Kotak Mahindra Bank is currently offering home loans with interest rates starting at 7.6 percent.

Rate Protection

The bank said the hybrid structure could help families manage household finances more predictably, particularly during the early years after buying a home, when expenses may include interiors, children’s education, savings and other commitments.

Once the selected fixed-rate period ends, the loan will automatically switch to a floating-rate structure. The applicable rate will be linked to the repo rate plus a predefined spread disclosed when the loan is sanctioned.

According to the bank, a borrower taking a Rs 1 crore home loan could potentially save up to ₹3.46 lakh if interest rates rise towards recent highs.

No Premium

The hybrid option is available for both home loans and loans against property at pricing comparable with the bank’s floating-rate home loans. Customers will not have to pay a separate premium for selecting the hybrid structure, the lender said.

Nakul Saxena, Head of Mortgages at Kotak Mahindra Bank, said home loans can span decades and pass through several interest-rate cycles, making changes in EMIs an important consideration for household budgets.

He said locking the interest rate for up to 65 months provides borrowers with a planning cushion during the early years of home ownership.

Kotak Mahindra Bank’s mortgage book grew 15 per cent to ₹1,50,903 crore as of June 30, 2026, compared with ₹1,31,792 crore a year earlier.

The hybrid home loan is available across India to eligible salaried and self-employed borrowers.