New Delhi: Home loans are going to get more expensive in the coming days. On Thursday many of India’s top private sector lenders announced increases in their lending rates. ICICI Bank, Kotak Mahindra Bank and mortgage lender HDFC have decided to withdraw their teaser home loan offers. And HDFC has ended its special festive home loan scheme, which had an interest rate of just 8.25%. New borrowers will now have to pay HDFC interests between 8.75 and 9.25% for their loans.
And it’s not just home loans that are going to get more expensive. Both ICICI Bank and HDFC Bank have increased their rates for auto loans. While ICICI has hiked it rates by up to 50 basis points, HDFC Bank has increased them by up to 100 basis points.
After a decade outside the country, the ANZ Banking Group is finally set to re-enter the Indian market. On Thursday it revealed it has got approval from the RBI to open a branch in the country. The license will allow ANZ to offer both wholesale and retail banking services in India, once its branch in Mumbai gets the green light. ANZ exited the Indian banking sector in 2000 when it sold its unit Grindlays Bank to Standard Chartered.
In a further sign that the government will remain firm on maintaining fuel price hikes, Congress president Sonia Gandhi told party members on Thursday that the price increases were necessary to fund the government’s social programmes. Over the last few days, both the opposition and some of the government’s allies have called for a rollback of the fuel price increases, which came into being after finance minister Pranab Mukherjee imposed fresh taxes on petrol and diesel during last week’s budget.