Kotak Mahindra Bank to offer home loans at 6.5% through festive season

By: |
September 10, 2021 3:30 AM

Ambuj Chandna, president – consumer assets, Kotak Mahindra Bank, said that at 6.5%, the lender’s pricing will be significantly more attractive than that of some of its competitors.

While the special rate will be available across all loan amounts, a borrower will need to have a minimum credit score of 800 to be offered a loan at 6.5%.While the special rate will be available across all loan amounts, a borrower will need to have a minimum credit score of 800 to be offered a loan at 6.5%.

Kotak Mahindra Bank on Thursday announced that it has reduced its lowest home loan interest rate by 15 basis points (bps) to 6.5% per annum. The special rate will be available under a limited-period festive offer beginning September 10 and ending on November 8.

While the special rate will be available across all loan amounts, a borrower will need to have a minimum credit score of 800 to be offered a loan at 6.5%. State Bank of India’s (SBI) home loans start at 6.7%, while both Housing Development Finance Corporation (HDFC) and ICICI Bank price their cheapest home loans at 6.75%.

Ambuj Chandna, president – consumer assets, Kotak Mahindra Bank, said that at 6.5%, the lender’s pricing will be significantly more attractive than that of some of its competitors. “This is a long-term play for us and while the 6.5% rate is specifically applicable to the festive period, let me assure all consumers that we will continue to be extremely competitive on pricing, when it comes to home loans even after this period,” he said.

Kotak Mahindra Bank has been growing in the home loans segment quite aggressively and it has been a high-growth segment for the lender over the last one year, Chandna added. “We believe there is an opportunity to grow. The strategy is aided by the fact that there is liquidity, interest rates are down and gives us a cushion,” he said.

The lender has 25-26% of its lending book in mortgages. The home loan book has been one of the best-performing books for the bank and apart from some minor shifts resulting from the pandemic, on a relative basis the book has done well, according to Chandna. Kotak Mahindra Bank’s rates have helped it to attract better-quality customers as home loan borrowers are very price-sensitive, he said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1RBI Deputy Governor M Rajeshwar Rao stresses on need to mainstream green finance
2PNB earns Rs 170 crore in FY21 by levying charges on non-maintenance of minimum balance: RTI
3Bad Bank to solve Rs 2 lakh crore bad loans, take NPAs off banks’ books; here’s how it will work