- Afraid of increasing home loan installments?
- Hybrid home loan option is beneficial
- Know how to save lakhs of rupees
Hybrid Home Loan : Home loan is seen as an important option for buying a house these days. In fact, taking this home loan has become common these days. However, EMIs have to be paid for several years after taking the loan. His burden is something else. But if the interest rate is high during this period, the EMI may also be higher. In such cases, hybrid home loans (Hybrid Home Loan) This can be a very good and great option. Which offers benefits of fixed and variable interest rates. This also saves you lakhs of rupees. What exactly is the option that will give you the most benefits? Let's know in detail.
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In a hybrid home loan, the interest rate remains fixed for a fixed period. This means, the increase or decrease in the market interest rate during this period does not affect your EMI. After this, the loan is converted to a variable interest rate. That is, it runs at a fixed rate for some time and then at a variable rate.
Kotak Mahindra Bank launched hybrid loan
Kotak Mahindra Bank has launched Hybrid Home Loans. Customers can initially choose a fixed interest rate of 39, 52 or 65 months. After a fixed period, the loan is automatically converted into a floating rate i.e. variable rate.
Suppose a person takes a 20-year home loan of ₹1 crore at an interest rate of 7.6%. Its EMI will be approximately ₹81,030. If the interest rate increases to 8.6%, the EMI will be approximately ₹87,500 and at 9.6% the EMI will reach approximately ₹94,000.
How much benefit on a loan of 1 crore?
In a hybrid home loan, the EMI remains fixed for a fixed period even if the interest rate rises. According to the bank's example, a customer can save up to ₹3.46 lakh on a loan of ₹1 crore taken at a higher rate of interest.
What are the benefits of this?
The biggest advantage of this loan is that the EMI is fixed for the first few years. This makes it easy to budget every month. Moreover, even if the interest rate is high, it does not directly affect the EMI over a fixed period.
What does this damage?
If the interest rate falls during the fixed term, the customer will not immediately benefit from the lower interest rate. Therefore, it is important to understand the fixed term, subsequent interest rate and other terms before taking the loan.
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