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Frequently Asked Questions

What are the factors that impact home loan interest rates?

Major factors affect the home loan interest rates. 

  • Credit Score – Credit score is calculated after taking into consideration factors such as payment history, credit utilization, credit age etc. Having a good credit score assures the lender of your creditworthiness while applying for a loan.
  • Loan Amount
  • Job Profile (Salaried/Self-employed)
  • Type of Interest Rate  (Fixed/Floating)

How can I reduce my housing loan rate of interest?

You can reduce your home loan interest rate through the following approaches:

  • You can shift your pricing regime.
  • You may switch from fixed interest rates to floating interest rates. When the floating rate comes down, so does your home loan interest rate.
  • You can switch to lenders who are providing a lesser interest rate than your current lender. 
  • You can also negotiate for a better rate with your existing lender. 

Which home loan interest rate should I opt for?

As a borrower, you should avail of the fixed interest rate home loan if the interest rate is low and your loan tenure is longer. 

You may opt for the floating interest rate home loan only if you are well versed with the real estate market trends and expect the interest rates to fall in the future. 

How can I check the total interest payout for my home loan?

Home Loan EMI calculator assists borrowers in determining the monthly amount they have to pay to settle their Home Loan. You input required loan amount, the rate of interest, and the loan tenure in the home loan EMI calculator. The calculator will then show you the total interest payout and the EMI estimate.

How is a home loan interest rate calculated?

Home loan interest rates are linked to external benchmark - Central bank’s Repo rate being one such benchmark. Banks add spread to the external benchmark to derive home loan interest rate. 

Kotak Mahindra Bank offers home loans to salaried individuals at 6.55% to 7.05% and to self-employed borrowers at 6.60% to 7.15%.

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Disclaimer (Things you should know):

For loans: Credit at the sole discretion of the Bank and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets.

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