SBI and ICICI Raise Interest Rates by 0.50%

SBI and ICICI Raise Interest Rates by 0.50%From August 13, the home loan, auto loan and personal loans would get costlier for many customers as India’s largest lender State Bank of India (SBI) and the second largest private lender ICICI Bank are going to raise their interest rates by 50 basis points.

The move is followed by the Reserve Bank of India’s decision to hike repo rates by a similar margin. SBI has raised the interest from 9.50 %to 10%; similar has been done by ICICI bank.

SBI has also increased the benchmark prime lending rate from 14.25 % to 14.75% and deposit dates from 180 days to 240 days.

ICICI has increased the Floating Reference Rate (FRR) for consumer loans, including home loans to 18.75% and 15.75% respectively. But it is also stated that the fixed rate customers will not be affected by the increase and their contracted rates will remain unchanged.

The reason of such increase is due to RBI which has increased its key policy rates in its first quarterly review of monetary policy last month to control the inflation.

And since then, almost two dozens of bank have increased their interest rates and after SBI and ICICI apex would increase the rates.