ICICI, 2 ors raise rates
Home, auto loans to cost more
PRESS TRUST OF INDIA
Mumbai, July 1: Three major lenders, including country's biggest private sector bank ICICI Bank, today announced an increase of 25 basis points, or 0.25 per cent, in lending rates, making auto, home and corporate loans more expensive for borrowers.
The rate hike will increase the cost for those who had taken advances on floating rate of interest. Besides ICICI Bank, state-owned Indian Overseas Bank and Dena Bank have also announced increase in their lending rates by similar margin.
The decision to hike lending comes within weeks of the Reserve Bank of India (RBI) increasing in key lending (repo) and borrowing (reverse repo) rates by 25 basis points to tame rising inflation.
The ICICI Bank has decided to increase its base rate (I-base) by 25 basis points to 9.50 per cent with effect from Monday, the lender said, adding the interest rates on all new loans are being determined with reference to the I-base rate.
The bank also announced to increase the benchmark prime lending rate by 25 basis points. The decision would impact the customers who had taken loans from the ICICI Bank on floating rate of interest.
"The fixed rate customers will not be impacted by the ...Increase and their contracted rates will remain unchanged", ICICI Bank said.
Lastupdate on : Fri, 1 Jul 2011 21:30:00 Makkah time
Lastupdate on : Fri, 1 Jul 2011 18:30:00 GMT
Lastupdate on : Sat, 2 Jul 2011 00:00:00 IST
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