Loans to cost more

Hi all,

Though this was being speculated for some time by people, it is finally out. People were just playing the waiting game and now the suspense is over.

Since the moment RBI increased the repo rates,to curb inflation,the anticipation and worry that loans will cost more was always in the minds of the consumer

All the Home, auto and other retail loans will cost up to 0.75 per cent more, with banks/lenders HDFC, ICICI Bank and SBI announcing an increase in interest rates following the Reserve Bank measures.

HDFC will raise its rate for by 0.75 per cent to 11 per cent for new customers from 10.25 per cent from today while the existing customers will have to shell out 0.50 per cent more at 10.75 per cent.

While the new fixed rate has been fixed at 14%.

ICICI Bank increased its floating rate for retail customers, including home loan borrowers, by 0.75 per cent to 13.50 per cent from June 30th.

For the existing floating rate customer the effect of the increase is from July 1st.

For the existing fixed rate customers, whose loans have been fully disbursed, will pay the prevailing rate. (lucky whose loans were sanctioned and disbursed fully by June 30th.)

The same increase is to be seen in the auto and personal loans also.

Most of the banks have already announced.

Hi Shanthi,

Saw the news yesterday about HDFC and ICICI increasing the rates. Home loans have become costilier...but it was on the expected lines isn't it.

I think, infact people where waiting for the announcement.

Everything is costilier everyewhere nowadays.

Thanks for giving the figures here.

Bye

hi saras,

It is something expected. but the with effect from july for all customers is what really hits.

You know actually for when there is a reduction in the Lending rate and your loan could cost a .25 less, the bank says you will get that effected in your next revision cycle which could be 3 months/6 months/i years..but when it is affecting the lender......

The other thing which i have mentioned regaring the last disbursement. usually it will be 5% that would be left of the total loan. and how unlucky for the person who would have to shell out more....

anyways price of everything is raising...right now i am worried about the indefinite strike..as of now the government has not taken any stand on that...let us see...

Hi shanthi,

You right about the the changes coming into effect from today and they announce it the previous day.....but not the same when the rates are lessened.

I too was thinking about the indefinite strike...the cost of all the essential commodities which is already rising ...will shoot up further...

Can just hope for the best..

Originally Posted by shanvy

hi saras,

It is something expected. but the with effect from july for all customers is what really hits.

You know actually for when there is a reduction in the Lending rate and your loan could cost a .25 less, the bank says you will get that effected in your next revision cycle which could be 3 months/6 months/i years..but when it is affecting the lender......

The other thing which i have mentioned regaring the last disbursement. usually it will be 5% that would be left of the total loan. and how unlucky for the person who would have to shell out more....

anyways price of everything is raising...right now i am worried about the indefinite strike..as of now the government has not taken any stand on that...let us see...