ICICI to hike home loan rates

New Delhi: After HDFC now India's largest private lender ICICI Bank will raise its home loan rates by 50 basis points by March end.

The bad news for consumers doesn't end there. The bank is planning to increase auto loan rates also by 25 basis points. The Reserve Bank had raised short-term rates by 25 basis points in the third quarter review.

Speaking to reporters on the sidelines of a conference, ICICI bank's retail banking head V Vaidyanathan said that interest rates on auto loans may also go up between 25 to 50 basis points, while rates on personal loan and credit card may not be hiked.

Following the hike in repo and reverse repo rates by RBI in its third quarter review of the monetary policy, HDFC Bank increased home loan rates. IDBI Ltd followed the move.

While HDFC Bank increased home loan rates by 50 basis points, IDBI Ltd increased lending rates by 25 basis points. Other banks are expected to follow suit.

(With PTI inputs)