Home and Auto and other retail loans will cost up to 0.75 per cent more
Home, auto and other retail loans will cost up to 0.75 per cent more, with lenders HDFC, ICICI Bank and SBI announced an increase in interest rates following the Reserve Bank squeeze on money supply.
HDFC will raise its minimum floating rate for home loans by 0.75 per cent to 11 per cent for new customers from 10.25 per cent from tomorrow, while the existing customers will have to shell out 0.50 per cent more at 10.75 per cent.
The new fixed rate would be 14 per cent, up 0.75 per cent. ICICI Bank increased its benchmark floating rate for retail customers, including home loan borrowers, by 0.75 per cent to 13.50 per cent.
The existing fixed rate customers, whose loans are fully disbursed, will, however, not be impacted by the increase and they will have to pay the prevailing rate.
ICICI Bank has also announced increase in benchmark rate for corporate by 0.75 percent to 16.50 percent.
HDFC bank also increased its deposit rates by 0.50 percent across most maturities, while ICICI Bank raised interest rates on fixed deposits of less than Rs 15 lakh by 0.50-1 percent .
The announcement by two banks came close on the heels of similar announcement by the largest lender SBI.