Kotak Mahindra Bank has reduced interest rates on home loans to an all-time low of 6.50 per cent per annum for a limited festive season offer, which will begin from September 10 and will continue till November 8, 2021. With this, the private lender has reduced the interest rate by a further 15 basis points (bps) from 6.65 per cent to 6.50 per cent per annum.
In a statement on Thursday, September 9, Kotak Mahindra Bank said that the interest rate is applicable on both fresh home loans as well as balance transfer loans and that it is available across all loans amounts and is linked to the borrower's credit profile. The rates are applicable for both the salaried and self-employed customer segments.
Mr Uday Kotak, Chief Executive Officer (CEO), Kotak Mahindar Bank informed in a tweet today that the bank will offer home loans at an interest rate of 6.50 per cent for the limited period in the festive season.
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 (@udaykotak) September 9, 2021
Additionally, 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, interest rate, the tenure of the loan, and EMI in an end-to-end completely digital, contactless, and paperless process.
“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,'' said Ambuj Chandna, President – Consumer Assets, Kotak Mahindra Bank.
''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,'' added Mr Chandra.
How to apply for Kotak Home Loan?
- To apply for a Kotak Home Loan online, visit the official website of Kotak Mahindra Bank and go to the home loans section.
- Customers can also apply through Kotak's bank branches across the country. Kotak Home Loans are available across over 100 cities and towns in India.
- Existing Kotak customers can also apply through the Kotak mobile banking app or net banking.
''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 per cent limited period offer,'' said Mr. Amit Goyal, CEO, India Sotheby's International Realty
''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,'' added Mr Goyal.
In the recent past, the bank's rivals which include HDFC Bank and State Bank of India (SBI), have also reduced their interest rates on home loans. In May 2021, State Bank of India - the country's largest lender, decreased its interest rates on home loans from 6.95 per cent to 6.70 per cent.
On Thursday, September 9, shares of Kotak Mahindra Bank settled 0.15 per cent higher at Rs 1,818 apiece on the NSE. Kotak Mahindra Bank opened at Rs 1,826 on the NSE, swinging to an intra day high of Rs 1,841.70 and an intra day low of Rs 1,806.80 throughout the trading session today.