Home-loan borrowers typically have to choose between the flexibility of a floating interest rate and the certainty of a fixed rate. The current interest rates are close to one of the lowest levels seen in the last decade. What if you get an opportunity to lock your home loan EMIs at current low rates for several years, after which the loan becomes a floating-rate home loan?
Kotak Mahindra Bank's new Hybrid Home Loan attempts to offer this middle ground. Borrowers can lock their interest rate and EMI for 39, 52 or 65 months, after which the loan automatically moves to a floating-rate structure.
