Kotak Mahindra Bank cuts home loan rates as competition heats up

Kotak Mahindra Bank’s announcement comes hours after State Bank of India slashed its home loan interest rates to as low as 6.7 per cent.

Mumbai: Hours after market leader State Bank of India (SBI) has brought down home loan interest rates to as low as 6.7 per cent, Kotak Mahindra Bank announced a 0.10 percentage point cut in its rates.

Claiming its offering to be the lowest in the market, Kotak Mahindra Bank said customers will be able to avail home loans for 6.65 per cent till March 31 as part of this special offer.

“We are delighted to offer consumers a special year-end bonus in the form of even lower home loan interest rates,” the bank’s president for consumer assets Ambuj Chandna said.

Interest rates are linked to borrowers' credit score and the Loan to Value (LTV) ratio, the bank said in a statement.

The 6.65 per cent rate is applicable to both new loans as well as Balance Transfer Loans across amounts, the statement added.

Under the Balance Transfer facility, a borrower can transfer the outstanding principal amount from one bank to another bank.

As the end of financial year approaches, SBI took the lead on Monday by announcing interest rate cut of up to 70 basis points or 0.7 per cent and complete waiver of processing fees till March 31.

Home loan rates were already at a 15-year-low, as banks compete in a market with low credit demand due to Covid-19-induced disruptions.

(With inputs from PTI)