Now you have to pay high EMI on your auto & home loan, as Nation’s two leading private lenders HDFC Bank and ICICI Bank have increased their lending rates by 45 and 50 basis points respectively, making auto, home and commercial loans dearer. This is the third time that the ICICI Bank has raised its lending rates since July, 2010. In January also, HDFC Bank had raised their lending rates.

ICICI Bank, India’s largest private lender, has raised their deposit rates by 50 basis points or 0.5% to 8.25% across different maturities. The peak term deposit rate will be 9.25% for 590, 770 & 990 day tenures. For present clients, it has increased the benchmark prime lending rate by a similar percentage.

Similarly, India’s second largest private lender, HDFC Bank has also escalated base rate by 45 basis points to 8.20%.

The high deposit rates would give better returns to savers. This raise would increase the EMIs for home & auto loan. Apart from personal loans, corporate loans will also become costly. The official of ICICI Bank said that this increase in lending rates will not affect the current fixed rate clients and their rates will remain same.