Kotak Mahindra Bank Ltd (KMBL) today kickstarted the festive season by announcing that it has reduced its Home Loan interest rates yet again by a further 15 basis points (bps) from 6.65 percent to 6.50 percent p.a. This special rate of 6.50 percent p.a. is a limited period festive season offer beginning 10th September and ending November 8, 2021.
Ambuj Chandna, President – Consumer Assets, Kotak Mahindra Bank said, “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 percent home loan interest rate now makes owning one’s dream home even more affordable.”
Rates for both fresh home loans and balance transfers now start at 6.50 percent. This special rate is available across all loans amounts and is linked to a borrower’s credit profile.
Further, digital has completely transformed the home loan sanction process. With Kotak Digi Home Loans, home loan applicants can now apply for and receive an instant in-principle sanction letter along with their loan amount eligibility, the tenure of the loan, interest rate and EMI in an end-to-end fully digital, paperless and contactless process.
Industry reactions
Amit Goyal, CEO, India Sotheby's International Realty
The mood amongst home buyers is quite positive and this rate cut will act as a catalyst for quicker decisions. We believe other banks and financial institutions may also bring down rates to match Kotak Bank's 6.5 percent limited period offer. Given the upcoming festive season, which is considered auspicious by a large number of Indians to make big ticket purchases, the timing of reduction in interest rate couldn't have been better.
Dr. Ananta Singh Raghuvanshi, Senior Executive Director, Sales & Marketing, Experion Developers
Lower interest rate regime, competitive pricing and stable supply are key factors this festive season. Like Kotak Bank, we hope other banks would also follow suit. Besides the attractive lower interest rate regime, the fact that developers will offer festive schemes and it should help boost sales for real estate
Anuj Puri, Chairman - ANAROCK Property Consultants
For affordable and mid-range home buyers, home loan interest rates are almost as important as property rates. Cost-sensitivity impacts all aspects of their home purchase journey and a reduction in interest rate can make the difference between purchase decisions and indecision. It is apt for lower interest rates to coincide with the festive season. Sentiment high during this period, and this year there is a lot of pent-up demand waiting to hit the market. It is to be hoped that Kotak's move will be emulated by other leading lenders, as well.
