"Rate revisions occur due to changing market conditions. The hikes are in light of the current macroeconomic, monetary, and anticipated liquidity conditions"
Home loan rates are set to get expensive for new borrowers:ICICI Bank and HDFC have discontinued their special home loan scheme. India's largest private sector bank will discontinue its 8.25% home loan scheme from March 1. The normal rates for ICICI Bank’s home loans up to Rs 30 lakh are 8.75 per cent, loans between Rs 30-50 lakh at 9 per cent and those above Rs 50 lakh, at 9.50 per cent.
HDFC too has discontinued its 8.25% home loan offer.
Similarly, Kotak Mahindra Bank has hiked interest rates on home loans by 50 bps.
Bank of India told NewsWire18 that it has no plans to extend the special home loan scheme, which lapsed on February-end. The bank is also not looking to hike retail loan rates as of now. To read more, please, visit CNBC-TV18
Many other banks, including Union Bank, Axis Bank and Punjab National Bank have already discontinued their special home loan schemes.
However, public sector banks are unlikely to increase the retail loan rates in a hurry. State Bank of India chairman OP Bhatt recently hinted that lending rates may go up only from the first quarter of the next fiscal. SBI is likely to take a call on hiking the lending rates by March-end.
However, teaser rates on home loans will come to an end by March end. Indicating the central bank’s discomfort with such teaser offers, especially when bad loans in the domestic banking system are on a rise, RBI deputy governor Usha Thorat had last month said, “some ‘teaser rates’ by banks is a cause of concern.” In a bid to woo customers, banks like SBI, Axis Bank and ICICI Bank have offered a special or a fixed rate on their home loans in the first two years, following which the rate would be charged on the floating rate basis. To read more, please, visit Indian Express
Private banks have hiked auto loan rates too.
Subscribe for Free!
To receive free emails or free RSS feeds, please, subscribe to Ravi Karandeekar's Pune Real Estate Market News Blog
For my blogs on real estate projects near Hinjewadi, real estate investment, advertising and other related topics, please, visit and join my Ravi Karandeekar's Pune Real Estate Blog Group