ICICI, HDFC, Kotak, Axis Bank Hike Loan Rate: Increase rates on Home & Car Loans

There comes the big news which everyone was afraid of - The largest players in the home loan and car loan markets have gone for a Home Loan Rate Hike and Car Loan Rate Hike. This comes as another big hit for the retail customers who are looking for a respite from the rising inflation costs, high cost of living in metro and other issues. The budget has already put a load on the consumers in terms for fuel price hike, then there is a proposal to charge 10.3% service tax if someone is booking a uner constructed flat or apartment. Now, the rate hike by the leading banks, who are big players in the home loan and car loan markets have added more problems for the end customers.

Axis bank was the first one in the list, which stopped its attractive discount home loan offer of 8.25% fixed for 2 years, even before the budget. Now, ICICI Bank and HDFC Bank have also joined the babndwagon by increasing the home loan rates and car loan rates.
The reason being quoted is the stand by RBI - it increased the cash reserve ratio by 75 basis points which led to this change. This also had the effect on bond market, the 10 year benchmark bond has risen around 12 bp since budget was announced.

By what rates have auto loans or car loans increased?
The auto loans or car loans have been increased between 0.5% to 1% and it varies from Bank to Bank.

By what rates have House loans or Home loans increased?
The home loans have gone by by 50 basis points.

The banks are quoting the reason that they have offered high rates on the deposits schemes by as much as 75 basis points and they are trying to justify it by saying that loan rates should get correlated with the high deposit rates.

Which Banks have increased the loan rates?
Multiple Banks - ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Axis Bank,

ANy other banks which are still offering cheaper home loan rates?
Yes - the budget was good for the nationalized banks - so again Banks like SBI, PNB, Bank of Maharashtra are offering the discounted rates. However, the problem is that these banks take atleast 45 days to process the applications, leaving less choice for the customers as bookings of the flat should be made in a hurry, and that is where the customer is forced to approach the private banks.
Union bank & Cancara Bank have wqithdrawn their discounted home loan schemes.