Kotak Mahindra Bank hikes home loan rates by 0.05%

Kotak Mahindra Bank, the early mover in starting aggressive play on home loan rates, on Monday announced a 0.05 per cent hike in its interest on mortgages.

The private sector lender will now be offering home loans starting from 6.55 per cent, as against 6.50 per cent earlier, as per an official statement.

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As part of a festive period move, the lender had announced a rate cut in September, which was followed by other industry players as well. Right now, other lenders are offering loans from 6.45 per cent.

"Our special 60-day festive season offer has been deeply appreciated by home buyers and we have seen very strong demand momentum ? both in fresh cases and balance transfers," Ambuj Chandna, president for consumer business, said.

The new rates will be applicable till December 10, the statement said.

It can be noted that industry players have been stressing that the rates - which are at a decadal low right now - are at a trough right now. The central bank is widely expected to start withdrawing its ultra-accommodative measures

started in wake of the pandemic, which led to a liquidity flush and lowered lending rates.

"Central banks and sovereigns globally have 1 medicine for all problems: print money. Distorts value and values. Like climate change it is the future generation's problem.We need to solve it not kick the can. Future is here. Future

is now," the bank's chief executive and managing director Uday Kotak had tweeted on Sunday.