Kotak Mahindra Bank has launched a hybrid home loan that enables customers to lock interest rates for up to 65 months to provide greater certainty on EMIs. According to reports from The Hindu BusinessLine, the product allows customers to choose a fixed-rate period of 39, 52 or 65 months, during which their interest rate and EMI remain unchanged even if the repo rate changes. The bank is currently offering housing loans starting at 7.6 per cent.
As reported by The Hindu BusinessLine, the product provides significant savings potential for borrowers. On a ₹1 crore home loan, a borrower could save up to ₹3.46 lakh if rates rise towards recent highs. After the selected fixed-rate period, the loan automatically moves to a floating-rate structure linked to the Repo Rate plus a predefined spread disclosed at sanction. The product is available for home loans and loan against property at a price comparable to the bank's floating-rate home loans, with no separate premium for choosing the hybrid structure.
According to The Hindu BusinessLine, Kotak Mahindra Bank's mortgage book grew 15 per cent to ₹1,50,903 crore as of June 30, 2026, from ₹1,31,792 crore at the end of the first quarter of the last financial year. The hybrid home loan is available across India to eligible salaried and self-employed borrowers, as reported by the bank.
Speaking about the product, Kotak Mahindra Bank Head (mortgages) Nakul Saxena stated that a home loan can span decades and move through several interest-rate cycles. As reported by The Hindu BusinessLine, he emphasized that by allowing customers to lock their rate for up to 65 months, the Kotak Hybrid Home Loan creates a meaningful planning cushion during the early years of home ownership. The bank noted that buying a home is only the beginning of a customer's financial journey, and families often manage interiors, education, savings and everyday expenses alongside the monthly EMI during the initial years.
