ICICI Bank, SBI Increase Hike Home Loan, Car Loan Rates

It was recently we published the news about majore banks going for a Hike in Interest Rates and Loan Rates, and today the two big major players in the Home Loan and Car Loan market have increased their PLR's or Prime lending rates which will ultimately lead to an increase in the interest rates to be paid on the various loans take by borrowers.
So the constumers of these loans will be hit majorly, as the hike will increase their EMI or monthly payments This means that the loans will now cost higher and it will hit the end customers with more money required for repayments.
By what rate are the loan interest rates increased by ICICI Bank and State Bank of India?
It is reported that the hike in Loan interest rates indicator i.e. PLR or Prime Lending Rate is 50 basis points or 0.5%

This is the era of rising loan rates, so some banks have also increased their deposit rates significantly. HDFC Bank recently sent out an email to all its customers about increased deposit rates and SBI is also reported to have increased the depopsit rates.
SBI is also learnt to come out with a floating rate deposit scheme, so as to attract investors.

By which date will the revised loan rates be effective by SBI & ICICI Bank?
It is reported that the new revised loan rates are getting effective from 18th August.

All this is credited to the RBI increasing the CRR on 27th July. It was almost certain that rates will go up.

Is it the right time to buy a house on home loan?
I dont think so. The rates are rising, then may rise even further. The rumors in the market is that it is the time for rising interest rates. We all know how well the banks do when the rates increase - they are very quick to pass on the increased rates to the loan borrowers. However, when the rates decrease, no bank promptly reduces the EMI. So it is the customer who get stuck.
Think twice before going for a long term committment like a home loan spanning over many long years. You may see that ou take a home loan at 8.5% today, and after 3 months the rate increases to 9% increasing your EMI. Some banks may offer teaser rates fixed for some initial period of time, but that's something varies from bank to bank. Even that might be increased if the interest rates increase.

It is also learnt that both the existing and the new loan borrowers will get affected because of this loan rate increase.
Individual loan seekers should practice caution before making long term long committments