The State Bank of India (SBI) on Wednesday said it will shortly raise car and other personal loan rates, excluding housing and education, by an average of 0.75%.
"We have announced hike in benchmark prime lending rates by 75 basis points.we will be raising rates of all (personal) loans, except for housing and education, by 75 basis points on an average," SBI MD Yogesh Aggarwal said.
He, however, clarified that some loan rates may rise by 1% and some by 0.50%, but the average would be 0.75%. "The rate hike would be announced in a few days," he added. Aggarwal's statement came amid reports that ICICI and Kotak are increasing auto interest rates by 0.75-1% this weekend. Pursuant to increase in cash reserve ratio by RBI. SBI had announced 0.75% in its benchmark prime lending rate to 12.25% last month.
However, all the existing housing and educational loans ans new educational loans up to Rs 4 lakh are excluded from the hike. Also, all existing and future agriculture production loans less than Rs 3 lakh are excluded from its impact.
SBI had also raised rates on some of deposit schemes. Aggarwal said hardening rate cycle has peaked in the economy and the rates are likely to stabilise at these levels.
SOURCE (THE TIMES OF INDIA 08-03-07)
