BE PREPARED to pay more on your home loan — or any other loan for that matter. Within a week of RBI hiking the cash reserve ratio, banks have begun raising lending rates.
ICICI Bank has raised its lending rate by 50 basis points. This means EMIs will become costlier by around Rs 31 per lakh per month on a 20-year loan. HDFC and SBI are also considering hiking home loan rates by 25-50 basis points.
ICICI Home Finance Company chief executive Rajiv Sabrawal said the bank has increased the rate in line with the prevailing cost of funds. The floating rate of interest on home loans will now be between 9.75 per cent and 10 per cent and the fixed rate of interest between 11.25 per cent to 11.5 per cent.