Kotak Mahindra Bank offers competitive rates to attract home buyers. Check new rates here

Kotak Mahindra Bank  |  Photo Credit: BCCL

New Delhi: Low-interest rates coupled with several offers from developers appear to have enticed a section of home buyers to book a property. Arguably, builders may be looking towards to clear their inventories during the on-going festive season by announcing freebies such as cash discounts, modular kitchens, furniture, god coins, air conditioners, club membership and so on.

More importantly, as per Reserve Bank of India's (RBI’s) attempts to revive consumption demand, several banks have slashed home loan interest rates to record lows to attract home buyers. Worth mentioning here that many state-controlled banks such as State Bank of India (SBI), Bank of Baroda, and Union Bank of India have reduced interest rates on home loans. Plus, they are also offering additional benefits to home buyers during this period, such as discounts on processing fees. There are special benefits for women home buyers.

Last month, in a bid to attract home buyers, SBI—the country’s largest lender by assets—announced concession on home loan rates by as high as 25 basis points. SBI home loan customers would get an interest concession of 20 bps for buying homes of above Rs 75 lakhs, and 5 bps more well be given for home loans applied through YONO and 5 bps interest concession to women home buyers.

Recently, private sector lender Kotak Mahindra Bank has cut its home loan interest rates by another 15 basis points (bps) to 6.75 per annum. “Kotak home loan and balance transfer loans now start at 6.75%* p.a., which is one of the lowest rates in the home loan market,” the bank mentioned.

If you, for instance, take a home loan of Rs 40 lakh for a period of 20 years at 6.75 per cent, your equated monthly instalment (EMI) will be Rs 30.415.  Further, on a loan of Rs 40 lakh for 20 years, your total interest is Rs 33 lakh. 

Shanti Ekambaram, Group President–Consumer Banking, Kotak Mahindra Bank, said: “Keeping the consumer’s interest in mind and to make home purchases more affordable, Kotak’s home loan interest rates are now available starting at 6.75% p.a. This is an excellent opportunity for both–new customers who are looking to buy a home as well as existing home loan borrowers who can transfer their outstanding home loan account balance to Kotak and use this opportunity to reduce their existing EMIs.”