Written by Susmita Pakrasi | Edited by Meenakshi Ray, Hindustan Times, New Delhi
Kotak Mahindra Bank has cut interest rates on its mortgage loans from 0.15% to 6.5%. Kotak Mahindra started the holiday season by announcing a further reduction in the mortgage interest rate by an additional 15 basis points (bps) from 6.65% to 6.50% per annum, he said. said Thursday in a statement.
The special 6.50% rate is a limited offer for the holiday season starting Friday and ending November 8, 2021, the bank said. With this, Kotak Mahindra Bank continues to offer one of the most competitive rates in the mortgage industry, he added. Kotak said the offer is for both new home loans and balance transfers, which are available for all loan amounts and are tied to the borrower’s credit profile. The loan, which applies to both employee and self-employed customer segments, comes with an instant in-principle sanction process with Kotak Digi Home Loans.
Ambuj Chandna, chairman of consumer assets, said it was the lowest interest rate in over a decade and one of the most competitive among rivals, its chairman for consumer assets. “As the world has changed and we spend more time at home, our lifestyles have also changed. People look for comfortable homes where the whole family can work, play and spend quality time together. Kotak’s incredible 6.50% mortgage interest rate now makes owning your dream home even more affordable, ”Chandna said as quoted by PTI News Agency.
Chandna said the demand for home loans was due to a greater interest in buying homes triggered by the pandemic, which has caused work and education to move towards housing, as well as a trend falling housing prices. Chandna added that aggressively priced home loans will be available both for new home loans and also for balance transfers.
In the past, Kotak Mahindra’s rivals – HDFC and State Bank of India (SBI) – have responded to rate cuts by cutting their own supply. Kotak’s lowest rate offer stood at 6.9% last October and has since been reduced twice to the current rate of 6.65%.