In order to increase its share in the home loan market, private sector bank Kotak Mahindra Bank announced a cut in its home loan rate by 0.15 percent. The bank will now provide housing loan at the rate of 6.50 percent.
Mumbai: If you are thinking of taking a home loan, then this can be good news for you. Private bank Kotak Mahindra Bank has reduced the interest rate on its home loan , which has come to the lowest level in the last decade. With an aim to increase its share in the home loan market, private sector bank Kotak Mahindra Bank on Thursday announced a cut in its home loan rate by 0.15 percent.
The bank will now provide housing loan at the rate of 6.50 percent. This is the lowest interest rate in over a decade in the most competitive home loan category among rivals, Ambuj Chandna, president of consumer assets of the bank, told reporters over phone.
He informed that the housing loan at the rate of 6.50 per cent is offered during festivals and will be available only for two months till November 8. Also, the loan at this reduced rate will be given to the customers with the highest credit score coming from the salaried class. Ambuj Chandna said that due to the Kovid-19 epidemic, the demand for housing loans is coming due to the high interest in buying the house. The pandemic has shifted both work and education to homes. A declining trend was seen in the prices of this first house.
He said the bank’s lowest rate offer was 6.9 per cent in October last. Since then the rate has been cut twice and currently the rate is 6.65 percent which has now been reduced to 6.50 percent after a 0.15 percent cut.
Earlier Kotak Bank’s main rivals HDFC Bank and SBI Bank have also responded to the rate cut by reducing the interest rate on their home loans. This time it will be interesting to see how these banks react to Kotak Bank’s interest cut.
Kotak Bank has been successful in reducing interest rates despite no policy rate cut. This is because of the extra cash available in the system. Credit off-take has also picked up in other retail segments such as credit cards etc.
